Money & Banking

Non-life and life insurance industry reported growth during the pandemic: IRDAI

Our Bureau Pune | Updated on October 15, 2021

Non-life insurance industry recorded 12.78 per cent growth, and life insurance industry grew 10 per cent

The insurance industry proved resilient during the pandemic. The non-life industry registered 12.78 per cent growth and the life insurance industry registered 10 per cent growth, said S N Rajeswari, Member (Distribution), Insurance Regulatory and Development Authority of India ( IRDAI).

She was delivering the inaugural address at the National Insurance Academy, Pune’s annual Insurance Summit on Thursday, on the virtual platform. The 17th in the series, the theme of the summit was ‘Quest for Collaboration: New Frontiers in Closing the Insurance Protection Gap’.

Rajeswari said the pandemic has resulted in people losing jobs, moving to different places for a livelihood and even children being forced to quit education to earn a livelihood. She insisted on the need for a coming together of all stakeholders to provide insurance coverage to the people living at the bottom of the pyramid, where bread winning is the priority, with simple and cost-efficient products.

Talking about the health protection gap, she said out of pocket expenses (OOP), higher cost of treatment, and communicable and lifestyle diseases are the major contributors. Technology can be a great enabler in quick settlement of claims, checking fraudulent claims, and providing end-to-end solutions to insurance customers, she said.

Though the intensity and frequency of natural calamities have increased manifold, only 10 per cent of the total losses are covered, NIA Director G Srinivasan said. He added that only 5 per cent of people in India have home insurance, 12 per cent have health insurance and only very few have cyber insurance cover. A large number of 3 crore MSMEs are under-insured and 90 per cent of the Indian working population is in the unorganised sector and, therefore, life insurance, health insurance, and pension are very critical for them, he said.

G Srinivasan highlighted the need to address the insurance protection gap and the urgent need to plug the increasing uninsured economic losses and loss of lives, as they adversely affect the economic growth of the country.

Published on October 14, 2021

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