India is becoming Insurance Hub

Most Vibrant & Viral Topic being discussed all over the world is…India is becoming Insurance Hub of the World !

LIC in the service of Nation will insure the world in future. There is vast Opportunities & Potential for Career Development in Insurance Sector in India

In Indian Insurance Industry, Employees working 10 Lakhs +, Marketing people working 50 lakhs +

Huge potential for development in Insurance Sector. Growth rate is more than 20% in last 3 years,

The sector is under developed and penetration of insurance is very low in the country as compared to other developing and developed countries.

Though the Insurance is one of the fastest growing sectors in India, Hardly 6 % of the population of the country has covered by life Insurance. Still this number is very poor comparing to developed countries.

USA population is 35 croes, but more than 6000 companies are engaged in insurance business.

 In India, population is more than 110 crores and hardly 52 companies are working in Insurance Sector. If we assume that only 50% population is insurable, still we need 10,000 companies to cater the need of 55 Crore people

Vision 2030.

Central Government has targeted, Life Insurance Penetration to increase upto 40 %, which is now 6%

This will create very huge potential for development in insurance Sector. The insurance business was merely 12 Billion US $ by 2000 , 100 Billion US $ by 2012 , Expected to grow 1000 Billion US $ by 2020 and 5000 Billion US $ by 2030 . It means that  in coming 5 years we will collect minimum 5 times of premium we have collected in last 50 to 60 years .

One interesting aspect of this growth is that Insurance Sector is heading towards SERVICING from merely SELLING. The mantra of “Sell it and Forget it” is now converting as “Service & Retain Client”. This requires Core insurance knowledge and not merely Selling Expertise.

As insurance sector is growing with 20% rate, there will be a huge requirement of Insurance professionals in the country.

Growth of life Insurance business mainly depends on 

1.More Young Population 

2. Enough Money in pocket & 

3.Awareness among the people.

1     More Young Population: - India is expected to become the most populous country in world by 2030. India will ahead of China. India’s urban population is expected to grow faster than its overall population and is estimated 41% of total population by year 2030. India will be amongst the youngest nations in the world. With nearly 140 million people in the college age group, one in every four graduates in the world will be the Indian.

2   Enough Money in pocket:-India is leading towards one of the Strongest Economy of the world by 2020 -25. It is international phenomenon that Insurance Sector always booms along with growing Economy. Make in India is the biggest project ever launched for the development of our country.

India is on its way to become a Manufacturing Giant in the world

FDI increases by 39% as compared to last year. Infrastructure Development is in progress all over India. India will have a labor surplus; India could, therefore, becomes a large supplier of skilled manpower to labor deficient markets around the world. India will be global supplier of skilled manpower for the entire world. Us china Japan, Russia, UK, will have shortfall of skilled labour. However Brazil, Mexico, Pakistan India will have surplus of skilled labour. In the next decade, India will experience enormous growth in its middle classes.

3. Insurance awareness among the people.

Literacy Rate in India has shown major sign of improvement in last 10 years. Current Literacy Rate in India stands at 74.04 percent in 2015, which will be 100% in very near future.

LIC OF India is the backbone (RID KI HADDI) of overall Economy of the India. Example: Biggest contract between Indian Railway & LIC for Bullet Train in India. Highest ever Funding of Rs.1.5 Lakh  Crore for Railways – Memorandum of Understanding (MoU) Signed with LIC India for Bullet Train in India .

Therefore it is sure that India is becoming Insurance Hub of the world.  All foreign insurance companies are waiting to enter in life insurance business. There will be a huge requirement of Insurance professionals in the country.  

This is my little effort to understand you that future of Indian Insurance professional has very bright.

Ashok Sonkusale

Development Officer