The Insurance Institute of India recently held its 70th annual conference and 137th Meeting of the Council in Madurai, where industry leaders discussed the current state of insurance penetration in India. Girija Subramanian, Chairperson and Managing Director of New India Assurance, noted that insurance penetration in India is low, with non-life insurance stuck at 1%. She attributed this to the industry’s failure to keep pace with GDP growth, customer expectations, and the needs of millennials, who form a significant part of the customer base.
Subramanian emphasized the need for the industry to go digital, automate processes, and approach customers through different distribution channels. She also stressed the importance of education and relevance in the industry, citing the need to spread awareness among customers and those who do not understand insurance. According to her, insurance is a vital tool for financial protection, but selling it to customers requires education and awareness.
R. Doraiswamy, Chief Executive Officer and Managing Director of Life Insurance Corporation of India, echoed Subramanian’s sentiments, stating that the way forward for the industry lies in an integrated proactive approach to education and risk management. He highlighted the need for advanced modules on climate risk modeling, geospatial analysis, and integrated training in ethical data use, fair underwriting practices, and corporate governance.
Doraiswamy also emphasized the importance of financial literacy and insurance penetration, suggesting that the institute should launch public-facing educational campaigns to enhance financial literacy and drive insurance penetration. He advocated for the inclusion of courses on artificial intelligence, automated underwriting, and fraud detection in the curriculum, and for fostering a culture of innovation and sustainability to meet the challenges of climate change and evolving customer needs.
The conference also saw the participation of other industry leaders, including Insurance Institute of India Secretary General P. Jaipuria, Chairperson of Madurai Insurance Institute V. Narayanan, and Honorary Secretary of Madurai Insurance Institute G. Seenivasan. Award winners were felicitated at the event, which aimed to promote education, skill development, and financial inclusion in the insurance industry. The conference concluded with a call to action for the industry to adapt to the changing landscape and work towards achieving the goal of insurance for all by 2047, thereby contributing to making India a developed nation.