Page 185 - India Insurance Report 2023- BIMTECH
P. 185
India Insurance Report - Series II 173
Reimagining Life Insurance vis-a-vis
Customer Experience : An India
Perspective
- Anand Pejawar
20 Dy. Managing Director, SBI General Insurance Company Ltd.
1. An Overview of the Life Insurance Industry in India
The life insurance industry in India has been evolving and transforming at a rapid pace over the last
two decades. The privatization of life insurance in the country at the turn of the millennium was a
pivotal point for the industry. As the network of private life insurers grew, customers across the country
began to find it easier to access life insurance coverage and ancillary products and services.
The increase in the FDI limit from 26% in 2000 to 49% in 2014 and finally to 74% in 2021 has also
driven massive changes in the country’s life insurance landscape. Increased global participation has
facilitated the inclusion of global best practices in the Indian life insurance sector and has made life
insurance products more cost-effective for domestic customers.
More importantly, coupled with other factors like the role of the insurance regulator IRDAI and the
introduction of more effective distribution channels, it has improved life insurance penetration in India. According
to the Economic Survey 2022-23, India recorded a life insurance penetration of 3.2 percent in 2021 - nearly twice
the penetration rate in other emerging markets and slightly over the global average. The trend continued into
the next year too, with life insurers clocking in a 37 percent rise in new premiums in March 2022.
With customers becoming increasingly aware of the importance of life insurance, the need of the
hour is for insurance providers to offer improved products and services that align with evolving customer
expectations. In response to changing customer preferences, the life insurance market in India is vastly
different now than it was a few years ago.
2. An Overview of the Key Trends that are Driving the Life Insurance Industry
in India
2.1. The Rise of InsurTech
Increased technological adoption across the life insurance sector has given rise to rapid InsurTech
