“We need to have far more flexibility in our structures,” RM Vishakha, MD & CEO IndiaFirst Life Insurance
How do you rate the growth of the Indian insurance industry?
The insurance industry is undergoing a robust growth phase now. There is still immense potential in industry to further the positive trends in the growth of Gross Domestic Product (GDP) with incomes of people. There is a large insurable population the base of which is expanding. I think the insurance industry is set for further growth in the future.
On a scale of 1 to 5, how do you rate the growth of the insurance industry in the last 10 years?
I don’t think rating the progress made in the last one decade is fair because there are so many paradigms and factors in the industry that make it tough to give a holistic rating. Surely, much has been done over the years and yet there is so much to be done. In insurance, there are so many parameters to assess the growth such as penetration, number of policies, size of premium, quantum of claim settlements etc. Further, in a sector like insurance, the industry constantly evolves and surges ahead and each step is a stepping stone for the other.
What, according to you, are the top three measures you think have made a positive difference to the industry in recent years?
To my mind, the changes in the use and file procedures giving flexibility in product designing, ease of doing business and measures being taken to expand the reach of the insurance cover are the most important measures. The vision of Insurance for all by 2047 and associated measures will go a long way in improving the penetration of insurance in the country.
What are the measures you expect to be taken going forward to push industry growth further?
We need to have far more flexibility in our structures. A lot of products today are catering to different customers with varying capacity. However, the ability to have flexibility in premiums is still limited. We also need to have more flexibility in premium payment. The Indian economy has a huge ability to create a far wider ecosystem of insurance which is a more connected network of all stakeholders.