INDIA: As stated by Mr Anil Kumar Aggarwal, managing director and CEO of Shriram General Insurance Company, if new regulations are implemented in the Indian insurance business, more firms will enter the area, which may result in mergers and acquisitions.
In an interview, Mr Aggarwal stated that India’s insurance industry is experiencing tremendous growth as a result of rising income, increased awareness, and technological advancements. The year 2022 has been one of the best in the general insurance industry’s history.
Because of the COVID-19 pandemic, which has touched every field of insurance, including health, vehicle, and motor insurance, the Indian insurance business has also seen numerous changes in customer behaviour and attitude about insurance.
Digital Experience
Customers expect insurers to provide a better digital experience after COVID-19. Mr Aggarwal further claims that there is a growing demand for cyber insurance among millennials.
InsurTechs are also playing an essential part in the rise in business insurance demand. To deal with the market scenario following the epidemic, the insurance industry has modified its functioning norms. Following the outbreak, car insurance costs are increasing.
InsurTechs are using technology such as Artificial Intelligence (AI), Machine Learning (ML), big data, and the Internet of Things (IoT) to improve insurance procedures, resulting in significant change.
Regulations
Meanwhile, the IRDAI has been implementing a number of new regulatory measures that, according to Mr Aggarwal, have the potential to accelerate insurers’ business growth and expand insurance coverage in India.
The IRDAI’s decision this year to boost the maximum number of tie-up limitations for corporate agents and insurance marketing businesses, for example, has created a favourable wave aimed at overall sectoral growth. This has paved the way for insurance companies, corporate agents, and insurance marketing businesses, as well as expanded policyholder options.
Furthermore, the IRDAI’s structure, such as the Regulatory Sandbox/Use and File method, will allow insurers to test innovative products in a regulated environment. “Increasing the experimentation time from six to 36 months would help us improve test outcomes,” Mr Aggarwal added.
Customers will benefit from unbiased comparisons provided by the IRDAI’s one-stop solution, Bima Sugam, which is anticipated to revolutionise insurance purchasing trends. “It will be a game changer for the end user, and companies will benefit as well,” he said.
Looking Ahead
The Indian government has recommended modifications to the two insurance laws — the Insurance Act 1938 and the Insurance Regulatory and Development Authority Act, 1999,” Mr Aggarwal said of upcoming developments.
Another option is to provide insurers a composite licence, which would allow life insurance companies to market non-life goods and vice versa. It will assist businesses in selling a mix of products that appeal to customers’ demands while also inventing new things. The difficulty here is merging the many skill sets required to manage completely distinct portfolios.
“The government has also proposed that insurers be permitted to market additional financial goods, which should be viewed as a chance for insurance brokers to become a single point of contact for customers seeking financial products, as well as a safeguard against unforeseen dangers.”
