The insurance industry in India has witnessed significant growth in recent years, driven by increasing awareness and the growing need for financial protection. Further IRDAI has taken a new drive Insurance for All by 2047 where it is focussing upon bridging the protection gap and reaching out to the last mile to provide insurance coverage. The mission should be not just to bring people under the net of insurance but also to ensure that people have adequate insurance and they really get the benefit once any unforeseen event happens. Normally it has observed that people do not buy adequate cover or maybe they are not advised properly to cover risks they may face.
Similarly there is a need to bridge the gap in coverage of risks being faced by business enterprises. There has been lot of traditional products in market but with change in dynamics of risk and increasing business uncertainty, there will be need for innovative and tailor made insurance products curated according to the need of different entities. In many instances we see the businesses tend to take insurance for fulfilling the statutory requirement rather than the protection angle.
All these challenges can be overcome, if we focus on awareness, education and training for all the stakeholders of the Insurance industry. The level of awareness of consumers’ needs a massive boost to make insurance a pull product and make them aware of risks around them so that they can take informed decisions. Some common jingle/theme must be coined by industry so that the message reaches out to all. In Mutual Fund the jingle “Mutual Fund Sahihai” hit the right notes and the industry benefitted a lot due to it.
An Industry cannot grow unless it has skilled people. Insurance is a technical subject which needs technical skill as well as experience. As the sector grows further, there will be demand of skilled professionals in various areas. The important areas will include Actuarial, Underwriting, Claims, Risk Management, Sales and Marketing, Insurance technology, Consultancy and Advisory services.
Insurance Sector has huge potentials for providing employment opportunity to masses. We need to reach out to the young talents about the potential of Insurance Industry and the scope of employment that it offers. We need to catch them young by introducing financial inclusion subject very early in school life so that when they grow up, they understand the meaning of protection and they adequately protect themselves, their family and business. Government new education policy must take note of this and include it in the curriculum wherever possible. If the people are adequately protected the need for government dependence will reduce.
Currently training in not on prime agenda in Insurance Industry in India and it comes last in bouquet of priority. Insurance Industry as a whole needs to focus more on training and continuous professional development of its employees, Insurance agents, Intermediaries and all stakeholders in the value chain of the industry. An informed and educated work force will be an asset to the industry and will act as a catalyst in growth of the industry. Insurers/Intermediaries must have regular upskilling and reskilling programmes for existing workforce. In fact IRDAI must earmark a percentage from profit/turnover which needs to be mandatorily spent on education and training.
As the industry continues to evolve, all the stakeholders including the regulators must come together to chart out a future strategy to focus on education and training which may prove to be a game changer in providing better products and services and will help to reach out to the masses.
