A well established and advanced insurance sector is a determinant of standard of living and a boon for economic development of a country. Insurance contributes and acts as a source of long term funds for developing infrastructure of the country and on the other hand brace the risk taking ability of the country. Insurance sector has largely contributed to the economic development of India over the past few decades. In India, premiums paid for the insurance including life insurance and general insurance have seen a considerable jump during past few years. Buying a life insurance acts as an asset and provides long term safety and security to an individual. Insurance must be bought efficiently so that it must cover our financial liabilities under any contingent event. Insurance also plays crucial role in maintaining high standards of living thus acting as an element of social security.
The New Year will see more efficient measures by the government to develop insurance sector thus helping general public as well. In India, a foreign company can currently own 26% in an insurance company while there are proposed changes to increase this limit to 49% which will significantly improve insurance sector of the country. It will drastically improve insurance standards of the country benefitting end customer. The general public will get more options as people from foreign business community want to invest in India. This will directly impact the offerings made by insurance providers. People will get new products with enhanced coverage’s which is the basic motive of buying an insurance policy.
More players in the insurance industry will also enhance stability and promote fair play in the industry. There will be more transparency in the system thus helping people to understand insurance products on the whole. This will help channeling penetration of the insurance sector and people will feel the importance of insurance. Insurance will reach to larger sections of the country and specially the rural parts of the country.
The online channel introduced in 2012 emerged as the most popular mode of buying insurance which is poised for more momentum in 2013 due to its convenience. It will bring the next wave of revolution in insurance. More and more companies will introduce online products with competitive pricing, right advice and people will feel right purchase experience. Assuming the cost factor and other advantages, it is best to buy insurance online.The insurance regulatory and development authority is working to ensure to eliminate experience of miss-selling which is the scourge of the insurance sector. The central authority is working to put a cap on commissions of the insurance agents which can eliminate biasness in the industry and agents will start suggesting products according to the needs of the people not by their personal motives. Other key initiatives expected this year in the insurance industry include bank assurance, open architecture and simplifying process of licensing which will have a positive impact on both consumers and insurance providers.