LIC is planning for an IPO and may be launched next year. The Chairman of LIC has been given extension till next year to oversee the process of successful launch of IPO. LIC IPO would be one of the biggest IPO considering the brand value of LIC.
The merger of PSU general insurance companies has been put on the back burner as of now. Government seems to have priority of privatizing PSU banks instead.
The Covid 19 has helped the country to upgrade its health infrastructure within a quick time. Post Covid this will help the common citizens to avail better quality healthcare. Health Insurance portfolio will also grow eventually and the reach all over the country will also widen. With sandbox products we will witness small ticket size products which will help to expand the health insurance industry.
Term Insurance has also gained traction during the covid regime as more and more people are understanding the needs of life insurance and want to secure the future of their family. Particularly the millennial population is more interested in term insurance which is a good sign.
IRDAI should think of opening Regional Offices in major metros so that it is more accessible to the insurance industry. IRDAI must also be more proactive in responding to consumer grievances and creating confidence in their mind.
Covid has resulted into adoption of digital technology at a fast pace by the Insurance companies as well as the intermediaries. This will ultimately benefit the consumers in terms of faster service, easy accessibility, increasing reach of insurance products, faster underwriting and claims settlement. Hopefully the technology will help to bridge the penetration gap in the insurance industry.
