The insurance sector is one of the business areas that has gone under tremendous changes and upheavals for good in the financial year 2018-19. Some of the major announcements that rocked the industry and we can count for the time being include regulatory changes that are specific to the insurance sector, the inclusion of mental illness in health insurance, changes in rules for motor insurance, and above all, the successful merger of three Public Sector Undertakings that include non-life insurers.
Life insurance policy companies here in India are surely delighted this year as the budget offers some great expectations and premonitions of growth this year. With government favouring policies, insurance sector companies can see takeaways that are eminently visible but could have added more offerings. As the interim budget of 2019-20 aims to put more income in the hands of the bourgeois class, workers in the unorganized sector and promises a good economy as it is expected to increase the demand and consumption largely.
The insurance sectorisexpected to see a rise in the demand for differenttypes of life insurance policies, thereby increasing the prospects of its business gains considerably.The government intends to offer a great breathing space to the agriculture sector by allocating a huge amount of INR 200 crores to develop this otherwise forsaken sector. This amount aims to increase the minimum support price of all the crops to at least 1.5 times the product cost. The list of favourite government moves doesn’t end here as a massive budget has also been allocated to betterrural infrastructure to build houses, toilets, roads and ensure electricity reaches every home. This comes out to be a great harbinger of good prospects and a huge opportunity for life insurance companies and good prospects to grow.
With other noticeable provisions in the interim budget, the government has aimed to give various other sectors a steady growth, which may support the life insurance sector largely. Government’s BharatmalaPariyojana, which aims to connect borders, interior and backward areas to the mainstream by developing more than 35,000 km of roads. This comes out to be a great opportunity for the insurance sector. A massive budget of Rs.5,35,000 crore has been allocated to the project and steps havebeen taken to expand as well as connect airports and helipads that remain unconnected as of now. The expansion of infrastructure will give domestic and international travellers a chance to explore these areas. This gives the insurance sector a chance to grow and come up with the best life insurance policies in India.
We all know that the insurance penetration here in India is abysmally low at 3.7% of the GDPas compared to a world average of 6.31%. In the recent past, the insurance sector witnessed a growth of 11% to 12%, the general insurance 18% and the average growth for health insurance is 35% per annum. With government favouring policies, the sector expects to increase its penetration and grow ata rate of 15% per annum. All they have to do is to reach out to people with different types of life insurance plansthat can cater to their needs in a better way.
As the government’s initiative to offer health as well as life insurance, social security to underprivileged and develop a better infrastructure to connect far-flung areas to the mainstream remains firm, the insurance sector can expect a promising year and grow at the rate of 15% per annum henceforth.
Health Insurance for Smokers - The fact of being a smoker amplifies the health insurance premium for smokers as compared to non - smokers.
Critical Illness Cover - Understand some of the important reasons why you definitely need to include a critical illness rider along with your term insurance plans
Life insurance can be combined with investments and many life plans allow you to do that. Check 4 Types of Life Insurance Investment Plan You Can’t Miss.
Term Insurance - Are you planning to buy Term Insurance? Check 5 Common Mistakes to Avoid While Purchasing Term Insurance Plan
We usually hesitate while buying a term insurance plan. Read 5 Myths about term insurance plans that you should not believe.
Life Insurance is important to be considered by every individual. Here are the 5 Things you Can’t Miss to Know about Life Insurance Policy.