Page 33 - Insurance Times June 2023

Total Investments of the Insurance Sector (As on March 31)
(Rs. crore)
Sector Life Insurers General Insurers Reinsurers Total
2020 2021 2020 2021 2020 2021 2020 2021
Public 30,70,852 33,97,832 1,36,291 1,58,703 58,757 68,799 32,65,901 36,25,333
(11.24) (10.65) (8.12) (16.44) (11.02) (17.09) (11.10) (11.01)
Private 8,19,422 10,82,142 1,55,895 1,90,067 11,712 15,733 9,87,029 12,87,942
(6.08) (32.06) (21.47) (21.92) (67.12) (34.33) (8.72) (30.49)

Total 38,90,274 44,79,973 2,92,187 3,48,770 70,469 84,532 42,52,930 49,13,275
(10.11) (15.16) (14.85) (19.37) (17.58) (19.96) (10.54) (15.53)

The balance of power coverage, look at certain segments of customers whose needs
have not been fully met yet, etc. We will see the emergence
The balance of power is shifting to the consumer. New and
of large consumer tech platforms as distribution channels for
ongoing social trends will shake up traditional business
insurance. With the rising need and value of insurance, such
patterns in the insurance industry. The change in power is
newer channels will definitely aid in a much refined customer
shifting towards the consumers due to a rise in consumer
experience along with enabling to create a curated offering
expectations. Consumers (people and businesses) are
with personalization.
demanding quicker transactions, and more consumers want
to work directly with insurance providers. This shift to the
This will also help in creating a model that is both transparent
rise in technology is because the smart phone has equipped
and personalized. It will be data driven and digital that will
consumers with a mobile device that carries out their thereby make the process of buying and reviewing insurance
demands. easy. The pandemic has also brought a big shift in the
consumption behaviour of customers. Such newer channels
The pandemic has forced insurers to leave the status quo
will help broaden the reach of the industry, especially the
behind. More change has occurred in the industry in the past
millennials and the younger population. Based on
year than in the previous several years combined and its pace demographics, the India health insurance market is
is only accelerating. Many insurers are taking bold steps to segmented into minors, adults, and senior citizens. Among
capitalize on structural changes in the marketplace, technology these, the senior citizens held the largest market share.
trends and evolving customer behaviors. To effectively
transform the business, insurers will need to make more than Increasingly, geriatric populations between the ages of 65
just fragmented business line or functional investments. and 80 are most vulnerable to medical emergencies, which is
why health insurance is of paramount importance for
Insurers promise "we'll be there when you need us." In providing the financial support necessary. However, the adult
exchange for premiums paid today, buyers trust that they segment is expected to grow at a faster pace during the
can rely on certain financial help if they face peril in an forecast period because of increased awareness of
uncertain future. To reinforce that promise, insurers have to healthcare among this demographic.
diversify risk, and scale helps them deliver on that promise.
And, to some extent, they've been trying to fine tune the The insurance industry is not suffering from poor
balance between centralized, standardized and controlled management of issues about which it does have control, like
capabilities and decentralized models. use of capital, reserving, or pricing. A niche but profitable
market within the insurance industry is small business
There is a growing opportunity for the industry to come up insurance, otherwise known as small commercial. Larger,
with new and innovative product offerings that fulfill the more aggressive insurers understand the value of small
unmet needs of the customer. There is a big gap in the market commercial and are making a push to move into this market
currently that is waiting to be filled with innovative and and update it. This is forcing carriers who already offer small
customized products. For e.g., offerings for people with certain commercial to significantly invest in new digital technologies
conditions from Day 1, offerings to cover outpatient expense to keep up with their competitors.

30 June 2023 The Insurance Times