CEO Rakesh Jain on Emerging Trends in Non-Life Insurance

Published By: APAS ​

Published Date: NA

Rakesh Jain, our CEO, shares insights about emerging trends and growth prospects in the Non-Life Insurance sector.

He states that during FY 2020-21, the sector’s growth rate was 16% CAGR. He also points out that private non-life insurers registered a growth rate of 5% despite COVID-19. However, the total non-life insurance penetration in India is just 1% of the GDP (CY20). This reflects the vast untapped potential.

He emphasises the need to adapt to Insurance Technology (Insurtech)like developed countries to enhance insurance penetration. Insurers have already started implementing advanced analytics and artificial intelligence to offer better solutions and services. According to an S&P Global Report in 2021, India is now the second largest Insurtech market in the APAC region.

Citing UN predictions, he says India’s population will become 164 cr by 2050 and that we need to enhance financial security for the people in all aspects, including health, life and property. While the government introduces schemes, such as AB PM-JAY and PMFBY, he says the insurance sector should also take efforts in innovation, digitisation and awareness initiatives.

He appreciates the contribution of multiline non-life insurance companies in risk management during the pandemic and natural calamities.

Jain further says that as companies go for public listing, they should start considering shareholders’ interests on par with consumers’ interests.

As he concludes he says the insurance must target growth at 2x to 3x of the GDP and doubling every 5-6 years. To achieve this, it is essential to consider the growth drivers and opportunities in offering personalised customer experience and indigenous products.