Insurance companies have been operating for more than 150 years, prior to nationalization, which took place in 1973, and then was opened up again in 2000. Yet the non-life insurance penetration levels remain the same. Revolutions happen when the middle class accepts a proposition. When Motor cars which were a luxury item in the 70’s and mobiles in the 90’s have today become a household item for most why not General Insurance is the question that the Industry is pondering.
That is because the consumers adapt bit by bit. Only after their basic needs are met they go for other optional items. The financial sector growth drives the buying of those items other than necessities. Even then in India consumers basically buy Insurance to save on tax, as an investment or because it is mandatory. But with the growth of the middle class the thought processes are changing. The middle class is burgeoning, is valuing their possessions and want to protect them.
The above brings forth a need to act and create more awareness about the benefits on non life insurance. The Industry, IRDA and the Government have therefore to first identify what exactly needs to be done to increase the awareness. Some sporadic initiatives and few steps have been taken in the past which needs to be taken forward in a more serious note clearly focusing at the various profiles of the consumers/ citizens socially and commercially.