The number of people relying on insurance in the country is increasing continuously, know what is the reason

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Author: Siddharth PriyadarshiPublish Date: Fri, 02 Sep 2022 09:00 AM (IST)Updated Date: Fri, 02 Sep 2022 09:00 AM (IST)

New Delhi, Business Desk. India will become the sixth largest insurance market by 2032. According to the Swiss Re Institute in Switzerland, the rapid expansion in the Indian economy and regulatory reforms will strengthen the insurance market. The report says that India’s insurance premiums will grow at an average annual rate of 14 per cent over the next decade.

The report said that the total insurance premium in the country is likely to increase at the rate of 14 per cent for the next 10 years. The Swiss Re Institute expects the country’s life insurance industry to grow at 6.6 per cent this year and 7.1 per cent in 2023. According to PTI, the Swiss Re Institute has mentioned in its latest note that the insurance premium in the country may increase at an average rate of 14 per cent. At the same time, India’s insurance sector can become the sixth largest market in the country in terms of total premiums by 2032, currently it is at number 10 in the world.

The report said that life insurance premiums in India may cross $100 billion (Rs 8,00,000 crore) mark for the first time by the end of 2022.

There are many reasons for the increase in the number of insurers in India. Accidents and death are the untold truths of the life cycle, no matter where you live in the country or any part of the world. The insurance business in India started about two centuries ago. It started in 1818, but it still has a long way to go to become as powerful and popular as the insurance business in the West. For example, health insurance in USA is much more customer oriented than health insurance in India. There the premium and profit of the insurer are given more importance.

Why insurance coverage is necessary

Initially, there was hesitation among people in India to get insurance, but now people are slowly getting attracted towards it. India is undoubtedly one of the fastest growing economy in the world but on the other hand it is also home to many diseases. Also there are more accidents here. In such a situation, in view of the uncertainties of life, the interest of people towards insurance policies has increased. The cost of compensation for accidents and treatment of diseases is heavy on your pocket. Many people get insurance cover from their employer, but it is not a permanent solution. The employer’s health benefit or insurance cover lasts only as long as you are working in the company. Once you leave the job, you lose all the benefits and coverage associated with it.

Benefits of insurance coverage

An insurance policy performs various functions and provides a variety of benefits for you. Insurance coverage mitigates the impact of unforeseen and difficult situations of loss. It gives you financial relief during financial crisis. It not only saves the insured from financial crisis but also reduces the mental stress arising out of it. Insurance coverage provides a sense of assurance to the policyholders. The insured pays a small part of his earnings in return for this certainty. The way an insurance policy works, it gives it the appearance of a co-operative plan. An insurance company works on the basis of collective risk and premium and it covers the people at risk.

Edited By: Siddharth Priyadarshi

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