NOTABLE PAST DISCUSSIONS

Setting the Tone

Imagine a world without insurance. We wouldn’t have experienced such develovement that we see today. Insurance has enlabled the risk taking capacity of businesses which inturn has enabled the capacity to construct, transport, ship, build factories and offices and provide professional services. Insurance exists because people need security. Without insurance our daily life would be far less risk-taking and without any risk-taking there would be no innovation in businesses. Put simply, insurance is what enables the modern world to get on with life.

It is said that a well established and evolved insurance sector is an advantage for economic development of a country. It provides long-term funds for infrastructure development and simultaneously strengthens the risk-taking ability of the country. India has been on the growth path over the past decade and it is a denominator of India’s risk taking capacity, which reflects India’s Insurance sector. This has also been possible due to the privatization of the sector.

Market Size

  • Government’s policy of insuring the uninsured has gradually pushed insurance penetration in the country and proliferation of insurance schemes.
  • Gross premiums written in India reached Rs. 5.53 trillion (US$ 94.48 billion) in FY18, with Rs. 4.58 trillion (US$ 71.1 billion) from life insurance and Rs. 1.51 trillion (US$ 23.38 billion) from non-life insurance. Overall insurance penetration (premiums as % of GDP) in India reached 3.69 per cent in 2017 from 2.71 per cent in 2001.
  • In FY19 (up to August 2018), premium from new life insurance business increased 6.20 per cent year-on-year to Rs. 755.88 billion (US$ 11.28 billion). In FY19 (up to July 2018), gross direct premiums of non-life insurers reached Rs. 49,067.47 crore (US$ 7.32 billion), showing a year-on-year growth rate of 13.91 per cent.

(Source: ibef.org)

The Economic Times Insurance Summit 2018

Acting as the change agent, it is ET’s constant endeavor to address to the issues and matters of importance that are determinants to the growth of our nation. ET, through its various industry led initiatives, has been promoting the transformation India is witnessing at its every nook and corner and so ET announces the 5th edition of The Economic Times Insurance Summit to showcase the growth the sector witnessed, challenges faced and how it overcame the challenges and what will determine the growth rate of the sector in years to come? In this edition, we will take stock of the situation, analyze the past and draw the future. The one day summit will discuss all major aspects that needs immediate attention and bring forth the hidden opportunities. The agenda will be to explore:-

  • Distribution challenges
  • Right product for the Right Customer
  • Meeting your top line
  • Insurance penetration in hinterlands of the country (Awareness as well as establishment of a company)
  • Public sector monopoly?

Government’s Role

The Indian insurance sector has seen a rapid growth in the last one decade. The sector has witnessed new entrants, mergers and huge investments. The sector is so lucrative that foreign multinationals have expressed interest in merging or investing in domestic insurance companies as Government
policies restricts foreign companies to directly sell insurance in India. The question that arises is whether Government policies are favourable enough and does it promote ease of doing business and fair play? Since Insurance is a critical subject, it is important to frame policies that promotes investments and at the same time safeguards the public interest. Government has approved the ordinance to increase Foreign Direct Investment (FDI) limit in Insurance sector from 26 per cent to 49 per cent which would further help attract investments in the sector.

Future of Insurance Sector

It can be said without a doubt that the insurance sector in India is all set to grow further with more engagement from private, public and foreign companies. The Government policies also look promising and the overall insurance industry is expected to reach US$ 280 billion by 2020. Factors like growing middle class, growing population and increasing awareness for insurance are favouring the growth of the sector. It can be said that India’s insurance sector is at the crossroads of development and factors like distribution channels, focus on financial inclusion, and consumer’s need will drive growth in this sector.

Things to Watch Out

A world class platform, one-to-one meetings with solution providers and the opportunity to network with your peers will arm you with the information you need. The summit will discuss key challenges being faced, advancement in the sector and the opportunities. The summit will include:

Focused Tracks
Inclusive session that will enable and engage the audience through an interesting and thought provoking group discussion to discuss the key issues in the
industry and bring out their relevant solutions
National/International case studies to understand business models that’s transforming businesses
Live Survey during the summit that will provide immediate feedback from the attending audience on varied issues
We will also explore an opportunity with “Student Chair” wherein a selected/nominated student from a reputed college will be part of a panel discussion for about 10 minutes and share his/her perspective as baton bearers of tomorrow
Investors Meet