Insurance sector set for transformation: Subhash Khuntia

The Indian insurance sector is at present on the cusp of a transformation, remarked Dr. Subhash Khuntia who retired from his position as IRDAI chairman recently.

In a message to the managing directors and CEOs life, non-life and health insurers, posted on the IRDAI website, Dr. Khuntia said that there are three main factors in play:

1. The demography of the country, with a predominantly young population, likely to persist for several years,
2. The potential for high economic growth that would improve affordability, and
3. The relatively low level of insurance penetration provides a huge opportunity for growth. Indian capability in IT and the IT-enabled services sector will further accentuate the potential growth of the Indian insurance sector.

He also said, “All of us are fortunate to be part of this process at this point of inflection. All the stakeholders need to work together to create awareness about the need for protection and for a higher level of customer engagement throughout the insurance life cycle for enhanced customer satisfaction.”

He further advised the insurers to concentrate on prevention of risk, and continuous engagement with policyholders, so that the latter derive benefits not only through claim settlement but also from prevention of loss. “This will generate greater trust between the insurer and the policyholder and both would stand to benefit in the long run,” he added.