It has been quite long since the insurance industry in India has existed, but it is only recently that it has undergone significant liberalization and deregulation. Till recently, despite the presence of over 100 insurance companies in the health, life and general sectors, the importance of non-life insurance products among citizens was minimal. Investments in auto, health & travel insurance was considered expenditure instead of mechanisms to tackle various risk scenarios.
What’s driving the growth of non-insurance products?
The non-life insurance market in India is witnessing a paradigm shift in terms of consumer preference, thanks to the increasing disposable income and improved general awareness about non-life insurance products amongst consumers. Growing prominence of the start-up ecosystem in India and technological advancements in the insurance industry are leading to increased adoption of such products. The emergence of newer players in this industry who are innovative with both products and technology is visibly reshaping the non-life insurance industry in India. These new players are providing the much-needed momentum to the insurance space with their flexible approach towards insurance services as they are more open to customizing their products according to the needs of the consumers.
What’s driving the growth of non-insurance products?
The non-life insurance market in India is witnessing a paradigm shift in terms of consumer preference, thanks to the increasing disposable income and improved general awareness about non-life insurance products amongst consumers. Growing prominence of the start-up ecosystem in India and technological advancements in the insurance industry are leading to increased adoption of such products. The emergence of newer players in this industry who are innovative with both products and technology is visibly reshaping the non-life insurance industry in India. These new players are providing the much-needed momentum to the insurance space with their flexible approach towards insurance services as they are more open to customizing their products according to the needs of the consumers.
Motor and health insurance leading the pack
Among the various non-life insurance products available in India, motor and health insurance are ruling the roost at this moment. Protecting vehicles against damages has become a priority for customers. Moreover, digital disruption in the claims process has further paved the way for higher adoption of motor vehicle insurance. Moreover, IRDA has mandated multi-year policy to further increase two-wheeler insurance penetration. Auto sales in India has witnessed a healthy 10% growth, which makes motor insurance a growing sector in India.
Awareness regarding health insurance has also grown manifold in recent years. Corporates, as well as the Government, are slowly getting enrolled in health schemes, thus making the concept even more popular. With the ever-increasing healthcare costs, insurance comes across as a saviour from paying the entire expenses out-of-pocket.
Among the various non-life insurance products available in India, motor and health insurance are ruling the roost at this moment. Protecting vehicles against damages has become a priority for customers. Moreover, digital disruption in the claims process has further paved the way for higher adoption of motor vehicle insurance. Moreover, IRDA has mandated multi-year policy to further increase two-wheeler insurance penetration. Auto sales in India has witnessed a healthy 10% growth, which makes motor insurance a growing sector in India.
Awareness regarding health insurance has also grown manifold in recent years. Corporates, as well as the Government, are slowly getting enrolled in health schemes, thus making the concept even more popular. With the ever-increasing healthcare costs, insurance comes across as a saviour from paying the entire expenses out-of-pocket.
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