An overview of General Insurance in India

In India where eighty eight percent of the population is outside the insurance net, the very progress of the nation is over shadowed by a myriad of perilous risks to which it is exposed. The languishing Indian farmer has no immediate answer to crop failure, unexpected accidents and illness, to seriously hamper his socio economic progress. In the absence of institutionalized mechanism provided by the government in guaranteeing financial safety nets against varied risks, the role of insurance operator’s in general insurance segment is increasingly felt important. The low level of insurance density and penetration adds woes to the above, which in comparison to world average is far below par. The insurance in India is urban centered which deprives the rural masses of the benefits of insurance. It follows that if India is to make any significant advance in the socio- economic front, the uninsured segments has to be brought under this inevitable social safety net. The liberation of the industry from public monopoly and opening up of the industry to private players since 2000 onward has really brought about promising changes in the segment, which would live up to fulfill the risk reduction aspirations of the people One may be optimistic to see that instigated by the demographic dividend of a young population, India is all set to become an attractive insurance market in the upcoming years for General Insurance industry.