Policyholders have a contract with the insurance company to protect them against certain well-defined risks, for which they pay a premium, a regular payment to the insurance company in exchange for the insurance company’s readiness to handle such risks.

The risk pooling hypothesis is a theory that underpins insurance. That what is a threat to one person is not a threat to society as a whole if they are self-sufficient.

Indian economy is roaring to move forward by keeping the effects of pandemic behind, and the insurance industry is playing a key role in providing the financial protection to the large section of our population. With the changing Risk landscape, Demographic dividend, Digital intervention, and the initiatives by the Government/ Regulator, the insurance industry is reaching out to their customers with better value proposition products and services


Some of the growth factors that are assisting the insurance industry in moving forward are:

  1. The government’s push to provide every household with access to banking facilities and to promote financial literacy, as well as access to credit, insurance, and pensions, has played a key role in reaching out to a large segment of our population. This is basically referred to as financial inclusion. There were 43.64 crore Jan Dhan Account subscribers as of October 13, 2021, with 29.13 crores coming from rural or semi-urban areas. The beneficiaries received 31.57 crore Rupay debit cards.
  2. Demographic Dividend stats depicts that Since 2018, India’s working-age population (those between the ages of 15 and 64) has risen faster than the dependent population (children under the age of 14 and persons beyond the age of 65).


  1. The pandemic has raised public awareness about the Higher Risk Awareness and need of using an insurance policy as a risk management tool. The increased frequency and severity of natural disasters, as well as new developing dangers, are acting as a catalyst in raising insurance knowledge
  2. As per the data as of March 2021, on Lower Insurance Penetration and Insurance Density, India’s Non-Life Insurance Penetration (Premium as a percentage of GDP) is 1% and Non-Life Insurance Density (Premium per capita (in USD)) is only 19 USD, which is significantly lower than that of the other major economies.
  3. Technology is assisting in the provision of easily available innovative quality products and services in a timely manner and at a reasonable cost. This acceleration of Digitization has aided in the speedy settlement of claims.
  4. Despite the fact that the epidemic has hindered progress, The Indian government expects the economy to grow to $5 trillion by 2024-25. the government’s reform programme and “Make in India” efforts will aid in meeting the objectives and provide a foundation for future economic growth.
  5. The new Vehicle Scrappage Policy, which went into effect on August 13, 2021, would not only replace old vehicles on Indian roads with modern and new vehicles, hence creating new employment possibilities, but it will also assist to reduce pollution and accidents.


There is a need to create smart applications to promote the appropriate degree of insurance protection so that everyone can understand risk exposure and the gap. The gap will demonstrate the extent to which people are ignorant of their vulnerability to unlucky events and the risk they pose. Product innovation is still far behind where it should be. It’s past time to use digital’s capabilities to reach out to the masses and change people’s minds about the need of having insurance cover for both realized and unrealized risks. Customers are searching for more than simply numerous safeguards. Rather, he or she must be provided with an experience, which can be secured by building digital customer encounters that foster trust. The goal of raising awareness is to urge everyone to be careful and to realize the value of insurance for everyone. All parties, including the regulator, must be forceful in working together to provide the minimum insurance protection for life.

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