With a huge population of 130 billion, India is fighting tooth and nail with the Corona 19 pandemic but the same is spreading like wildfire beyond control of the human being in spite of all the precautions taken at all the stages.
The Indian economy is taking a back foot due to the spread of Corona- 19, heavy rainfall all over the country, GDP going down minus 23% apart from China being aggressive on the Northern borders of the country. This situation definitely hampers the overall growth, affecting agriculture Sector, loss of employment, high cost of food items and so on and so forth.
Almost all sectors have been badly affected except few which has in fact got a new life line due to covid. The Insurance Industry is also feeling the heat of the pandemic with new business going down significantly with closure of business, less disposable income in the hands of people, reduction in savings, deferring of less important expenditure and number of other factors.
This is directly affecting the insurance industry in terms of new business as well as insurance business. Traditionally insurance expenditure is almost last on the agenda of people as people do not regard it as a priority. This situation is going to continue till the vaccine for Covid comes out. Now Risk Management has turned into crisis management where most of the people don’t know what future has in store for them.
With the current situation new recruitments would be down, companies would like to explore online channels to reduce cost and spread of business. The business and economy will bounce back once this pandemic is over but its cost would be high. It will leave scars which will not be erased easily.
