1. THE EMERGENCE OF DIVERGENT INCOME SEGMENTS At 26%, India has experienced the highest growth in high net worth individuals in the world, and with increasing consumer appetite for insurance products, insurers and wealth managers are attempting to keep pace with the growing interest of demanding investors. From a service delivery standpoint, the industry is slowly pivoting toward more customized services, digital contacts, real time reporting and filtered communication, critical to the success of these companies. Insurers and wealth managers are also making inroads into the home turf of Chartered Accountants and Tax Consultants by transforming their client service model; the older,...
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Even 20 years after liberalisation, non-life insurance penetration in the country is at lower levels vis-à-vis potential, growing from 0.50 per cent of GDP in 2002 to 1 per cent in 2021. Some say the lower penetration is due to a bigger denominator, while others say insurance is not growing as much as the other sectors. In contrast, global non-life insurance penetration is currently over 4.1 per cent. India holds enormous opportunities to grow its under penetrated non-life insurance market at par with global levels. So, larger investment is required in distribution infrastructure, products, technology, services innovation, and other such initiatives to popularise insurance in the country....
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Let’s have a look at the 5 recent developments in the Life Insurance Industry. Strong economic factors and the government pushing the right buttons with the implementation of technology has propelled all sectors of the Indian industry on a glorious path. Life Insurance industry has also made a significant contribution in putting our country on this glorious growth trajectory. Adopting life insurance for risk management and using it as a preferred tool for achieving major life goals has made a noteworthy contribution to the growth of the life insurance industry. Insurance density of life sector has grown to 55 US $ in the year 2017-18, a growth from the previous figure of 46.5 US $ in the...
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Innovation in Life Insurance Q&A with Fisher Zhang, FSA, CEO of AIA China December 2021 As the life insurance industry enters the deep-water zone of transformation, the current development of the industry is facing problems. The first problem is that the extensive operation in the past has caused inefficient consumption. Many customers are not educated about insurance, and many insurance policies are driven by personal relationships. Certain radical operation methods also make future risks not fully valued. For example, a decline in long-term interest rates is the consensus, but lifetime guaranteed returns remain high. The transformation and upgrading of the life insurance industry...
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Singapore’s life insurance industry recorded a total of S$1.21 billion in weighted new business premiums for the first quarter of 2022, according to data released by the Life Insurance Association, Singapore (LIA). This was a 2% decrease compared to the S$1.23 billion reported in the same quarter last year. Sales of annual premium products also saw a 20% reduction from the previous year, amounting to S$555.1 million in total weighted annual premiums. There was, however, an uptake of single-premium products, with LIA reporting a 21% quarter-on-quarter increase in weighted premiums, amounting to a total of S$655.4 million. Single-premium par and non-par products made up 88% of all...
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India likely to become sixth largest insurance market in next 10 years For the current year, Swiss Re expects India's life insurance industry to record a growth rate of 6.6% and a further rise to 7.1% in 2023. (iStock) In its latest note, Swiss Re stated that the country's insurance premiums in India will grow by an average of 14% per annum in nominal local currency terms over the next decade, making India the 6th largest in terms of total premium volume by 2032 from 10th largest in 2021, as reported by PTI. Swiss Re expects the Indian life insurance industry to grow at an exceptional rate of 6.6% in 2022 and further rise to 7.1% next year. Following this, it expects the life insurance...
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Six years after the insurance regulator IRDAI prohibited life insurance companies from offering health insurance products, it is mulling over allowing it again. It could be good news for policyholders as premium rates for health insurance policies are expected to come down because of intense competition among general, health and life insurance companies. “The profitability of a life insurance product depends on the product pricing. We expect the products to be priced appropriately by life insurers to ensure the profitability of these plans,” says Rushabh Gandhi, Deputy Chief Executive Officer at IndiaFirst Life. Mediclaim policy, which reimburses hospitalisation expenses to policyholders,...
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The European Insurance and Occupational Pensions Authority (EIOPA) published today its Risk Dashboard based on Solvency II data from the first quarter of 2022. The results show that insurers’ exposures to macro, market and digitalisation risks are currently the main concern for the insurance sector. The other risk categories, such as insurance as well as profitability and solvency risks stay at medium levels. Macro-related risks remain a key source of concern. Forecasted GDP growth at global level further decreased until Q2 2023, while inflation forecasts for main geographical areas remain high. Central banks are adjusting their instruments: the global average policy rate increased while...
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Trends in Life Insurance 2022: How the Industry Has Changed Reinsurance News, April 2022 The life insurance industry has experienced dramatic changes since the onset of COVID-19 in March 2020. Growing competition, a rise in online shopping, and the impact of COVID-19 have all led to an increase in contactless and completely digitized life insurance options. At Policygenius, we wanted to dig deeper into these big industry changes and better understand how they affect life insurance buyers. What our 2022 life insurance trend report found was a changing industry that's making tremendous strides and creating even better pricing and policy options for customers. The transformation of an...
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Indian life insurance sector logs 11% CAGR during 2017-22: Report Life insurance penetration rate in India rose to 3.2% in December 2021 from 2.8% in December 2019, almost on a par with the global average of 3.3%. (Photo: iStock) The global provider of custom research and analytics solutions estimated that the industry will grow at a CAGR of 9% until 2027. Benori Knowledge also found that life insurance penetration rate in India rose to 3.2% in December 2021 from 2.8% in December 2019, almost on a par with the global average of 3.3%. At 3.2 % penetration, India ranks 10th in the global life insurance market and ahead of China (at 2.4%) and the UK (at 3%). This is expected to increase in the...
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