The insurance industry has always been considered an underdog for decades. Many people are not even aware of the benefits of some basic policies. Until 2001 only 2.71% of the market was captured by the Insurance sector. Within a span of sixteen years, it has penetrated to 3.7% in 2017. During the period of six years i.e. 2011 to 2017, there’s a 56% increase in this Industry.
In the Financial Year (FY) of 2017-2018, it has recorded the Gross premium of 72 billion USD.
The launch of revolutionary schemes like Ayushman Bharat has further accelerated this sector.
Pioneer float of such plans commits to cover Rs. 5 lakhs for about 10 crore poor families. This move will also generate lots of jobs for different skills that will improvise the economy and the employment rates.
There has always been needed for different Insurance coverage. Life and health are the most important things in a person’s life that need protection. Many people didn’t even know the wellbeing they can get by investing in the Insurance. By buying good insurance plan at a very low price, many families are already cherishing. This has also resulted in making Insurance more popular. Often neglected people are the poor segment of the society. Because of no coverage in Insurance their condition further deteriorates. However this new Insurance plan, Ayushman Baharat is designed to cover these strata of society.
Growing awareness among people has also contributed to the growth of the Insurance Industry. Other factors like increasing salaries, generation X and the changing ecosystem of self-care has further bestowed Insurance penetration. Ayushman Bharat, a flagship program by the government is the key benefactor for the Insurance sector. With the advent of such plans, Insurance Industry is expected to reach 280 Billion USD in the FY of 2019-2020.