10 Mind-Blowing Facts about the Insurance industry in India

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The insurance industry in India has the ability to grow rapidly. While almost everyone has some knowledge about insurance, very few of us truly know enough about it.

 

This is why today, we are discussing a few mind-blowing facts about the insurance industry in India that you may not know about. These fun facts are great to share with your colleagues and friends or for simply knowing more about your industry.

 

We at Assurekit are working to simplify insurance distribution. So anyone, yes even you, can distribute insurance from your platform (website, app, etc). If you’d like to know more click here.


1) Actor Rajnikanth has insured his voice

 

What a lot of us may not know about Mr Rajnikanth, the great actor from south India, is that if he ever loses his voice, he will be compensated for it. Insuring a career breaking aspect of your body (eg hands, legs or ever voice) is common for athletes and celebrities in the west.

 

In India, such insurances are given on a per case basis. These are not available on the shelves but are required to be personalised individually.

 

Along with Mr Rajnikanth, even Lata Mangeshkar has insured her voice.

 

2) Soon you will be able to switch on-off your Insurance for your vehicle. 

 

2020 saw a lot of changes, one of them being the rise in “On and Off” motor insurance. This enables individuals to pay premiums only when they require an insurance cover and not for a fixed period of one year. Such policies commonly take into account the age and experience of the driver. You can use an app to switch the policy on and off according to your needs.

 

Such innovative policies mean that you pay lesser premiums and it is a great alternative if a vehicle isn’t driven often.

 

3) Mediclaim cannot exclude mental illnesses

 

This order was passed in May 2021 by the Delhi High court. It was brought forth by a woman who contended that the exclusion of mental illness is illegal as per the Mental health act of 2017.

 

4) The Insurtech space is growing rapidly

Digit insurance became the first company to hit unicorn status in 2021. Followed by Riskcovry raising $5M in series A. These coupled with the rapid adoption of digital insurance shows growing interest in the InsurTech space. Furthermore, Plum insurance raised $15.6 million in May 2021.

 

The digital trend is only expected to grow with 88% of Indian customers willing to purchase through digital channels. With the growing trend, InsurTech will be leading insurance to the next level.

 

5) The insurance penetration is 3.7% in 2020-2021

When compared to foreign countries like the US with 11.43% and Taiwan with 19.97%, according to reports in 2019, we can see a huge opportunity for growth. India still has a huge opportunity to penetrate the Indian market. Tier 2 and 3 cities have a huge untapped potential. 

 

6) The general insurance sector is growing at an 18% rate.

 

Furthermore, the life insurance sector is growing at an 11% rate, according to the insurance sector budget of 2020-2021. We can therefore expect the industry to grow rather quickly and close the penetration gap.

 

7) Health insurance saw a complete transformation in 2020

 

The year 2020 saw phenomenal growth for the health insurance sector in India. It grew by 15.8%. While most players saw divergent growth as shown in the graph by Mint.com below.

 

While this was due to a tragic situation, it has led to more Indian being exposed to the idea of protection. More health insurance will result into more stability even in the case of a crisis.


8) The insurance industry of India has 57 insurance companies.

 

24 of them are in the life insurance business, while 33 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company. There are six public sector insurers in the non-life insurance segment.

 

9) Indians were charged an extra premium for insurance policies until 1823, in India 


The Bombay life insurance became the first company to not charge any extra premium from Indians. Under British rule,
Indians had to pay an extra premium in comparison to Britishers. 
The Bombay life insurance became the first company to not charge any extra premium from Indians. It thrived, despite fierce competition from other companies at the time.

 

10)LIC started with 5 zonal offices,33 divisional offices and 212 branch offices.


Today it has 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices and the Corporate office. It is synonymous with buying life insurance in India. As of 2021, Finance Minister Nirmala Sitharaman has announced a proposal to conduct an IPO for LIC. Which is expected to go live in FY22.

 

Conclusion

 

There you have it, 10 mind-blowing facts about insurance in India. Was your mind blown? Ours definitely was while researching this. The insurance industry has ever adapted and changed throughout the years. What we see today is very different from how the insurance industry started. Today we are seeing rapid adoption of technology and customised plans.


So, what are your thoughts? Comment a fact that you know below!

Key Takeaways

  • Actor Rajnikanth has insured his voice
  • Soon you will be able to switch on-off your Insurance for your vehicle.
  • Mediclaim cannot exclude mental illnesses
  • The Insurtech space is growing rapidly
  • The insurance penetration is 3.7% in 2020-2021
  • The general insurance sector is growing at an 18% rate
  • Health insurance saw a complete transformation in 2020
  • The insurance industry of India has 57 insurance companies
  • Indians were charged an extra premium for insurance policies until 1823, in India
  • LIC started with 5 zonal offices,33 divisional offices and 212 branch offices.

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