Page 30 - Insurance Times May 2023

threatening even greater increases, all while attempting to and however they want. Simply put, easing access to
create the perception that it is too financially troubled to pay insurance has become an important business objective.
claims. Yet this is an industry that has stored away so much Companies are looking for newer strategic partnerships to
excess profit that it now sits on more surplus than at any time significantly smoothen the life insurance purchase journey
in history. for customers.

Insurance companies have never been forthcoming about In the years to come, insurers will work consistently to improve
why ups and downs in insurance premiums happen. In these the service experience by investing in omni-channel
cyclical hard markets, they have internally admitted that the capabilities over time. Overall, life insurers are leading the
cause is the industry's own self-made boom and bust economic way in setting out a path of significant investments and
cycle. But publicly they have attempted to cover up their innovation across the insurance industry that will play over
mismanaged underwriting and accounting practices by the next three to five years.
blaming insurance regulator and the regulatory system.
Globally in the insurance sector, many things are changing
Fear of uncertain global events and the flight to safety will
focussed on safeguarding the policyholder's interest; growing
further push the need to stay protected with life insurance
the industry and making the players remain solvent.
solutions. People are focussed on prudent financial planning.
Turbulent markets and the uncertain job market has
The government has already notified the General Insurance
encouraged individuals to secure their savings with long-term
Business (Nationalisation) Amendment Act which will allow
guaranteed return plans.
the government to cut its stake in state-owned general
insurers to below 51%. The industry witnessed a radical shift
Premium Underwritten by Life Insurers
in customer's needs, behaviour, and expectations, which
disrupted insurance operations prompting an overnight shift
to virtualization.

Life insurance industry
Since the privatization of the insurance industry two decades
ago, the fallout of COVID-19 pandemic has possibly been the
most epochal for the industry. Adversity has brought out the
best in the life insurance business and created a slew of
innovations. The need for life insurance has gained significant
visibility since the pandemic struck, as the uncertainties of
life have become starkly visible. Health and wellbeing of self
and loved ones have become a priority, which has made
Indian Health Insurance Market
financial protection a crucial task. Quite naturally, protection
Geographically, the Indian health insurance market is
solutions including life and health insurance have become an
segmented into North India, South India, West India, and
essential requirement in every financial portfolio.
East India. Among these regions, the Western part of India
dominates the country's health insurance market. However,
The preferred methods of insurance buying are also
undergoing changed. Customers are not only comfortable South India is also emerging with a great growth potential in
buying digitally, but also interacting digitally with advisors on the health insurance market. States like Andhra Pradesh,
various platforms. As millennials continue to become a larger Tamil Nadu, Telangana, etc., are leading the market with
part of our economy, this trend is likely to become even increasing health insurance penetration. Additionally, the
stronger, prompting insurers to relook at the customer growing preference for private hospitals and structured public
experience through various distribution channels. healthcare systems in these regions plays a crucial role in
propelling the overall market growth.
Life insurers are continuing building multi-channel capabilities
to assist and provide information to the customers, wherever, Furthermore, the presence of significant health insurance

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