CEO Rakesh Jain on National Insurance Awareness Day – ETBFSI 2022

Published By: BFSI By The Economic Times​

Published Date: 28-06-2022

On the occasion of National Insurance Awareness Day, Rakesh Jain, Reliance General Insurance’s CEO, shared his insights on the industry’s development in the last two decades. The discussion aimed to cover pivotal points in the industry’s future development, the impact of the COVID-19 pandemic and post-privatisation.

Two decades ago, the insurance market was underpenetrated, with only a few insured people. However, with privatisation and the COVID-19 pandemic, insurance has proved its importance in protecting finances and lives. However, it needs more advancements and a customer-centric approach to reach the global average of 7.23%.

Rakesh Jain expresses his opinion on building customer-centric platforms and products to improve penetration. He highlights how COVID-19 has increased the importance of insurance among Indians post-pandemic, shifting the general insurance industry’s approach to being more customer-centric.

In his opinion, the industry now focuses more on customer needs and creates innovative products that allow customisation and affordability. He added that IRDAI’s initiatives, such as “Use and File Products,” are groundbreaking and drive more innovation.

Additionally, privatisation and the COVID-19 pandemic have resulted in more technological adoption and a “phygital” approach, with increasing awareness and various cost-effective options in the insurance industry.

Despite these advancements, challenges persist. Low awareness, accessibility issues in rural areas and limited affordability remain significant barriers. Industry leaders emphasise the need for continued collaboration between insurers and the government to address these issues.

Looking ahead, the sector is ready for notable growth, driven by rising incomes, increased consumer awareness and regulatory support. Projections suggest that India’s insurance industry could become one of the fastest-growing globally in the coming decade, reflecting its vast undeveloped potential.