Impact of economic slowdown on the Non-Life Insurance Market in India

Insurance is important! There’s no denying that in a country like India Insurance has been a game-changer in securing people’s life and valuables that can range from luxury items like cars, mobile phones to even businesses and expensive equipment. As a result, experts believed that the growth in Insurance market was here to stay and make a long run. However, the sudden slump in India’s GDP for a while and major shortage of demand has now cast a shadow over the future of the insurance industry as well.

In this blog, we’ll particularly look at the impact of the economic slowdown on the Non-Life Insurance Market in India. Even though slow down started in the high-ticket segments like real estate and automotive, it has had a cascading effect on the rest and consumption has significantly dropped. The motor insurance segment which has been the largest revenue contributor in the general insurance market is seeing a huge slump due to sales of cars dropping.

 

Revenue generated by the premiums from the motor insurance segment contribute close to 38 per cent to the overall collection when compared to the various other segments, for the non-life insurance market in India. As per the analysts, in the June quarter, growth in the segment stood at around 4 per cent, with premium collection at Rs 15,724 crore against Rs 15,074 crore in the same period of FY19. This was the lowest growth in the last five quarters, starting from Q1FY19. This was reported by the Economic Times in their news article.

Gurneesh Khurana, president and country head (motor business), Bajaj Allianz General Insurance while speaking to Economic Times reporter for their story, he said “ Most of the manufacturers across private cars, two-wheelers, and commercial vehicles have shown continuous negative sales trend for the past few months. This slowdown has impacted motor insurance adversely, as insurance from new vehicles contributes a significant part.” Amidst all this, the upcoming festive season is what people are watching out for as sales generally pick-up during this time and it may help in curtailing the loss of profits to some extent.

For More Information On This Report, Please Visit @ https://www.researchonglobalmarkets.com/non-life-insurance-market-in-india-2018-2023.html

What is aiding the growth of Satellite Communication for IoT Networks?

Internet of Things (IoT) is all about connectivity and a complete IoT system integrates four distinct components namely, sensors/devices, connectivity, data processing and a user interface. So first, the sensors/devices work on collecting the data from the environment, which is then sent to the cloud. The sensors can be connected to the clouds through Wi-Fi, Bluetooth, satellite or directly via ethernet. Once the data gets to the cloud, the software performs some kind of processing on it and then, the information is made useful to the end-user in some way.

With the growing demand for global IoT connectivity, the satellite communications for IoT network industry is also undergoing a huge shift. Satellite technology has the potential to support the development of the IoT connectivity since it can easily handle such wide-spread connectivity challenge.

Satellite operators are collaborating to bring forth such assistance and devices that can unleash the full potential of IoT. The expanding requirement for IoT end-device connectivity is fuelling the need for innovative communication systems. The basic requirement of IoT is that all devices need to be connected at all times no matter where they are. Though Bluetooth, Wi-Fi connectivity and terrestrial GSM networks can support many IoT applications, they cannot provide the worldwide support of the satellites.

Additionally, the reliability of wireless communication is still a challenging issue. They do not provide high connectivity required during critical operations. These issues can be solved through satellite networks. Also, IoT networks are generally deployed over existing cellular infrastructure which are pretty limited. Satellite networks cover large areas and do not discriminate any geographical location. Thus for large scale IoT deployments satellite-based IoTs are much preferred over cellular IoTs.

How is the Blockchain Adoption in Automotive Industry transforming the market?

The automotive industry of the future will be very different from that of today. In today’s day and age, the vehicles are evolving to become more than just a mode of transport.

Blockchain technology has already disrupted the financial services and supply chain industries, and has finally arrived in the automobile industry.

The automobile industry has always been more inclined towards the adoption of advanced technology, but in recent times, the auto original equipment manufacturers (OEMs) worldwide are struggling to keep up with the pace of accelerating growth. The blockchain adoption in automotive industry is making a significant change in the global market.

Various technological advancements in the sector like the Internet of Things (IoT), blockchain and artificial intelligence (AI) are paving the way for autonomous vehicles. The stakeholders in the automobile industry are looking into how blockchain technology can be applied in businesses and to launch major initiates.

With the rise in the autonomous cars and innumerable devices communicating with each other, there has been a growing need for these transactions and interactions to exist on a static database of highly secured and shared platform. Through this, we are paving a path for smart cars which can autonomously sense its own needs and advise the driver in case it needs a repair and is also able to contact nearby suppliers for replacements or negotiate prices for that matter, and process the payment for the respective services.

The increasing availability of fake auto parts which enter the supply chain undetected and are available hugely in dealer service centres, has caused damage to the auto part supplier brands or the automobile makers. To fight against these odds, blockchain technology can be used. It helps in the process of identifying the frauds and can prevent further seep in of the fake products in the supply chain by creating a distinctive signature for each auto part along with fixed timestamps from where the part is created.

The adoption of blockchain technology in the automotive industry can bring about revolutionary changes in the market. It can result in more eco-friendly driving alternatives, blockchain based automotive insurance and also remotely locking and unlocking vehicles.

For More Information On This Report, Please Visit @
https://www.researchonglobalmarkets.com/blockchain-adoption-in-automotive-industry.html

What are the options in the E-Payment Solutions Market In India

The implementation of demonetization, banning of Rs.500 and Rs. 1000 notes were done to ensure malpractices and curb black money. This is why Indians turned to digital money, and this trend appears to have stuck.   

An upsurge in the use of the digital transaction channels pushed providers in the E-Payment Solutions Market In India to make their offerings safer, and as a result, we now have a host of digital wallets, net banking, IMPS, NEFT and online transfer alternatives to choose from. It was tough to make this sudden shift from physical to digital cash but citizens were happy that they did because they experienced a greater level of convenience when making or collecting payments.

Going by our understanding, here’s what’s available in the market today.

• Debit and credit cards
• Cash on delivery
• Mobile payments
• Online bank transfers

All of these payment modes are extremely big today, but it’s still the debit and credit cards that are used the most. It’s possible that many users consider cards to be safer, or that they are familiar with them. Mobile payments come in second, especially after UPI was implemented and top m-wallets like PayTm, FreeCharge were strengthened via the KYC norms.

Of course, card usage will always be a winner here as the payment is instant and that it’s connected directly to the bank account, but this depends a lot on the individual and how much they wish to spend. So, based on the consumer priority list, payment solutions would be as follows.

• Card payments as credit/debit cards registered a higher issuance number and they’re used a lot.
• UPI owing to the convenience factor, low to non-existent usage fees and security has been enhanced via the PAN numbers. 
• Mobile wallets, only due to the convenience factor, it reduces the need for physical cash and works even when ATMs don’t.
• Online bank transactions that fall in last as you do have to be in front of a PC, have a good internet connection and so it’s inconvenient, time-consuming and has to fit bank formalities.

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Trading scenario in the Specialty Chemicals Market In India

Importers deal with inorganic and organic chemicals and then redirect them to various industries like the agriculture industry and other areas like paints, construction, manufacturing, plastics, and allied industries. Chemicals are categorized as specialized products and commercial products, where the specialized products have a pretty good demand but are in short supply, and so, therefore, are costly.  

So, what chemicals ensure the highest profits on being imported? Chemical brands in the Specialty Chemicals Market In India, that are planning on profiting from importing chemicals that are likely to sell more in domestic markets have to consider the following points first.        

• The kind of demand for chemicals, especially those being imported, inside the domestic market.
• The level, or production output usually generated by domestic chemical manufacturers.
• The kind of expenses incurred and expected out of manufacturing those chemicals.
• That includes the duties and taxes levied on the importing of chemicals that have a higher demand.

Specialty Chemicals Market in India

Most owners of the reputed Indian chemical companies find it more feasible to import any chemical only after considering all of these checkpoints. And, based on that, these are the kind of imports currently in vogue.

The production of Methylene Diphenyl Diisocyanate in India is relatively low but is used in multiple industries, especially plastics and considering the number of plastics being used, importing MDD has increased. As a result, the main profits lie in MDD above others.

In 2018, India had imported Cyclic Hydrocarbons from over 31 countries. This is also in demand and highly profitable, coming in second to MDD.

The next important chemical is the Acyclic Alcohols, often called methanol, propanols, methyl, butanols, or octyl. Made from olefins, AA is used in plasticizer production, forming esters like phthalates, for plasticizing vinyl and other resins, or as solvents.  

These three main chemicals are often exported from China, Saudi Arabia, and the USA, and is likely to grow in the coming years.

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Industry outlook of the Specialty Chemicals Market In India

Specialty Chemicals are needed for their end-use applications instead of their compositions, or what they can do. They’re blended using many base chemicals and then sold on the kind of quality or use that they have; often termed as high value, low volume chemicals differentiating them from commodity chemicals or basic chemicals.

As a result of this, they’re sold in bulk to companies who use them to add value to a range of finished products. Based on the end-uses, you’ve got the following sub-segments in the Specialty Chemicals Market In India.   

Agro-chemicals, Colourants, Construction chemicals, Flavourings, Polymer & additives, Personal care & Fragrances, Surfactants, Textile chemicals, Water treatment chemicals.

What is the market size like?

Specialty chemicals involve lots of product research and innovation. The Asia-Pacific region is exhibiting increased growth owing to factors like availability of raw material and low-cost labour, and that you have many international players investing in these critical factors in emerging nations.

China was leading in this front but had lost its standing over controversies connected with environmental concerns, strict pollution norms that have slowed down the rate of production; a lot of companies here are shifting over to dedicated areas, or have had these restrictions placed on them. The end result is a higher manufacturing cost, and industry players that had preciously sourced from China are looking for alternatives, like India.

What the Indian Specialty Chemicals Market is like

India is the sixth-largest producer and consumer in this field. This industry here represented an INR 2,083.8 Bn in 2017, growing by ~10.7%, led by domestic consumption alone, and from the look of it will probably be higher in the upcoming years and

The market caters to the global and local markets, with its key specialties in the construction chemicals, agrochemicals, paints, fine chemicals, aroma, and personal care chemicals.      

It is aided by the lowered cost of labor and extensive support from the government especially the ‘Make in India’ initiative and establishment of chemical hubs in the PCPI regions (Petroleum, Chemicals and Petrochemicals Investment.

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