Insurance industry is agile in adopting new reforms: Tarun Chugh
With a vision for insurance for all by 2047, life insurance industry has been witnessing significant traction lately. According to Tarun Chugh, Managing Director & CEO, Bajaj Allianz Life Insurance, the industry is agile in adopting new reforms and this will l remain the key differentiator of the insurance industry. Coupled with its commitment in building the distribution network, this resulted in the industry’s growth this year.
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How has been the growth in the industry in the current fiscal so far? What are the differentiators you see?
The industry plays a very critical role in nation building—from investments in long-term projectsby the government to providing employment (both direct and indirect). Keeping these aspects in mind, the industry continues to focus on avoiding disruption for customers and building efficiency by adopting new age tech. It is also committed in building the distribution network to reach larger and newer customer segments. In2024, we saw all this in play. It resulted in the industry clocking a strong growth of 16 per cent in Individual Rated New Business (YTD Nov 2024 vis-à-vis YTD Nov 2023). Private life insurers are creating impact by empowering its people with digital assets.
There is a talk about 100 per cent FDI in insurance and also a composite product? How will this impact different stakeholders in the insurance industry, including the customers (policy-holders)?
The opportunity of growth in the industry is tremendous. The talks on FDI will help newer players enter the market and thereby accelerate the speed towards the vision of ‘Insurance for all by 2047’. Similarly, composite licencing will enable new players and distributors and they will be able to offer different products to customers. Ultimately, customers will benefit from all these as In all thisas insurers will be able to reach them with varied solutions.
What is the impact of recent regulatory reforms on the life insurance segment?
The new regulations will enhance the benefits of the customers and overall increase efficiencies within the industry. However, it will take some time for them to start showing results. Currently, the industry is recalibrating and working round the clock to ensure the deadlines are met, while key projects remain on track and business goals met. The industry is agile in adapting new reforms and I feel this will remain the key differentiator of the industry, while always deliveringlong-term benefits for the customers.