Question 1 : sumit tyagi - f2 > Amandeep Attri f1
question 2
Introduction
Brief Introduction
The future of the Indian insurance sector looks
bright. The sector which stood at a strong US$ 72 billion in 2012 has the
potential to grow to US$ 280 billion by 2020. This growth is driven by India’s
favourable regulatory environment which guarantees stability and fair play.
This environment has given rise to an insurance market which encourages foreign
investors to tap into the sector’s massive potential.
Ever since the Indian government liberalised the
insurance sector in 2000 and opened the doors for private participation, the
sector has gone from strength to strength. The resultant competition has
provided the consumer with a never-before-seen range of products and providers,
and also enhanced service levels markedly.
The health of the insurance sector reflects a
country’s economy. This sector not only generates long-term funds for
infrastructure development, but also increases a country’s risk-taking
capacity. India’s economic growth since the turn of the century is viewed as a
significant development in the global economy. This view is helped in no small
part by a booming insurance industry.
Discussion
The
insurance sector has witnessed a decline due to regulatory changes, industry
leaders are optimistic about scope for growth.
The picture is not all gloomy, and though in the short run the industry may be undergoing a catharsis, the long-term picture is still compelling, and a stronger and better-founded insurance industry is likely to emerge from this challenging situation, a joint study by CII and leading global professional services organisations says.
Innovation is the first casualty in tightly controlled markets, leading to drying up of incentives for product manufacturers and decline in business activities, the report pointed out.
The report also said the market today is primarily dependent on push, tax incentives and mandatory buying.
"There is very little customer pull, which will come from increasing financial awareness along with increasing savings and disposable incomes. Till then the stakeholders will have to strive for product simplification, transparency of cost and pricing, effective distribution and improving customer servicing to drive sales," it said.
In the long run, it said, the insurance industry is poised for a strong growth, as the domestic economy is expected to grow steadily.
For the first time in 12 years, the life insurance industry witnessed a decline in the first year premium collected in FY12, from Rs 1,258 billion in FY11 to Rs 1,142 billion, a drop of approximately 10 percent.
The picture is not all gloomy, and though in the short run the industry may be undergoing a catharsis, the long-term picture is still compelling, and a stronger and better-founded insurance industry is likely to emerge from this challenging situation, a joint study by CII and leading global professional services organisations says.
Innovation is the first casualty in tightly controlled markets, leading to drying up of incentives for product manufacturers and decline in business activities, the report pointed out.
The report also said the market today is primarily dependent on push, tax incentives and mandatory buying.
"There is very little customer pull, which will come from increasing financial awareness along with increasing savings and disposable incomes. Till then the stakeholders will have to strive for product simplification, transparency of cost and pricing, effective distribution and improving customer servicing to drive sales," it said.
In the long run, it said, the insurance industry is poised for a strong growth, as the domestic economy is expected to grow steadily.
For the first time in 12 years, the life insurance industry witnessed a decline in the first year premium collected in FY12, from Rs 1,258 billion in FY11 to Rs 1,142 billion, a drop of approximately 10 percent.
Conclusion
More companies are now being forced to offer similar benefits, or
better them – that too at very attractive prices.
With healthcare getting expensive and awareness increasing, more
people are going in for sophisticated plans.
If we see changes in FDI rules as growth picks up in the coming
years, we might see more specialised health insurance companies setting up shop
in the country.
There is still a long way to go and with
increasing competition among insurers, customers will get a lot of benefits
Fair attempt!!!! Long and late by 2 days....
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