The FDI hike in the budget announcement is expected to bring good inflow of FDI in the insurance market in India. The overseas partners would like to increase their stake in the insurance ventures. The Insurance market will also expand with the investment in the Insurance sector resulting in increased reach and more employment opportunities. Hopefully this will give a positive boost in growth of the insurance market.
Every year road crashes result in loss of lakhs of lives and serious injuries to crores of people. In most of the cases crashes occur either due to carelessness or due to lack of road safety awareness of the road user. Road Accidents are a major cause of concern to common people, government, insurers and other stakeholders.
Recently the Central Govt. has announced several measures for minimizing / arresting the Road Accidents by bringing the scrap age policy of age old automobiles, electric vehicles, usage of BS VI vehicles only apart from making the highways and other roads to be constructed in the manner to avoid the accidents to the minimum. However, Risk Management by all the Stakeholders for self-safety and avoiding the loss of resources is the only answer for Road safety. The deaths due to road accidents far exceed than any other causes. The Motor Insurance Industry is bleeding due to third party claims and reduction in road crash deaths with help to balance the portfolio.
Technology in Insurance is going to play a major role in expanding reach. Though investments would be high in technology initially but over the period the cost of acquisition of customers will reduce and penetration will increase. Technology is going to play an important role in Underwriting as well as claims. Video based underwriting, live inspection, live survey, Online KYC will be the future of Industry. This will create more employment in the technology space in the insurance sector. We must adopt and adapt technology at a faster pace to increase the reach of penetration.
In 2021 many Standard Insurance Products are expected to be launched by various insurers. Also we need to watch out for sandbox products which are also expected to have good demand in coming years.
