Page 35 - India Insurance Report 2023- BIMTECH

India Insurance Report - Series II 23

The Future of General Insurance in India

- Bhargav Dasgupta
4 MD & CEO, ICICI Lombard General Insurance Company

The world is changing at an unprecedented pace, and with it, the landscape of general insurance.
This is a momentous time for our industry, and the future of insurance promises to be exciting, innovative,
and, most importantly, centred on the customer. Insurance, as a sector, is a critical pillar of the economy,
offering stability and security in the face of risk. As I see it, insurance is not just merely about selling or
renewing policies; it’s about protecting dreams, ambitions, and quality of life and the assets that have
been created by individuals and companies through their hard-earned money. It is about transforming
solely from the role of financial support during an unfortunate scenario to becoming a lifelong partner
in risk management.

1. India Poised for Growth - The Opportunity

The general insurance sector in India has experienced robust growth over the past few decades,
catalysed by a rising middle class, increased awareness about the benefits of insurance and regulatory
reforms promoting industry expansion. However, in India, general insurance has traditionally been
under-penetrated. According to the Economic Survey 2020, insurance penetration in India was just
3.76%. I see that as a tremendous opportunity as India sets her eyes on becoming a US $ 5 trillion
economy. The digital revolution is rapidly adding to that opportunity, fuelled by the rising middle
class, increased digital literacy, and expanding access to the internet.

Historically, the insurance sector in India was predominantly state-controlled, with a handful of
public companies handling the majority of insurance services. The Insurance Regulatory and Development
Authority Act of 1999 marked a turning point by allowing the entry of private players and fostering a
competitive market. Since then, the industry has been on an upward trajectory, witnessing innovations
in products and delivery channels.

Currently, the general insurance market in India is characterised by a mix of state-owned companies
and private insurers, both domestic and foreign. These companies offer a range of non-life insurance
products, such as motor insurance, health insurance, fire insurance, and travel insurance, to name a few.

India’s demographic profile presents a lucrative opportunity for general insurance growth. With
more than 65% of its population below the age of 35 and a rapidly growing middle class, the demand for
insurance products, particularly health and motor insurance, is set to rise exponentially.

Moreover, the government’s push towards digitalization and financial inclusion, combined with a
surge in internet and smartphone usage, is propelling the growth of digital insurance platforms. These