Insurance-What`s new in 2014? This is the question asked by many people. This article will answer your question. A well-recognized & advanced insurance segment is essential for a decent standard of living of people. Hence, it’s a boon for the economic development of any country. The reason is simple. Insurance acts as a long term source of funds to develop the infrastructure of a particular country. Also insurance strengthens the risk taking capability of a particular country.
In the past decades, insurance sector has been a major contributor to the economic expansion of India. This is inevitable when you see that premiums paid for insurance policies which include life insurance & general insurance have increased. Consider an individual who buys a life insurance policy. This will act as an asset & will provide long term safety & security to the individual. Hence, this is how insurance sector plays an important role to maintain high living standards of people.
Now you must have got an idea as to how important the insurance sector is for a country & its people. In this article you can browse through the various efficient measures that our Government has undertaken to develop the insurance sector in India.
In India, a foreign company can presently own up to 26% in an insurance organization. However, the Government can increase this limit to 49%. This step will considerably improve the performance of the insurance sector of our country. This will eventually improve the overall standards of our country & its people. More options will be available for the general public to choose from. A person, who buys insurance, looks for the beneficial features of that product. This step will bring in more new products with enhanced coverage features.
The step to increase the share of foreign companies up to 49% in an insurance company in India will promote more number of players in the area of insurance. This will improve stability & encourage fair play & transparency in the industry. Thus, all this will help insurance sector to penetrate into the major sections of India. Also the awareness & importance of insurance will increase especially in the rural areas of India.
An online medium was introduced in 2012 to buy insurance policies online in India. This particular approach proved to be the most popular medium to buy insurance. As a result this approach will gain momentum because of its ease factor. This will bring in another subsequent sign of revolution in the insurance sector in India. It will open the gates for more & more companies to introduce their online products in India with competitive prices & accurate advice. This will pave the way to enhance the overall experience factor of the people of India.
It is convenient to get insurance online as it is cost effective along with many other advantages. The Insurance Regulatory & Development Authority (IRDA) is also working to eliminate completely which is a bane to the insurance industry. It is the practice to miss-sell insurance policies to the people. IRDA is also set to prevent unworthy commissions that the insurance agents charge. This will eliminate unfair trade practices in the industry. Also the agents will commence to suggest products that meet people’s needs instead have been driven by their own personal motives.
The other key initiatives anticipated in the insurance sector contain initiatives like bank assurance, open architecture & to simplify the process of licensing. Ultimately all these initiatives will have an optimistic impact on the country as well as the people of India on the whole. Thus, helping to raise the standard of living of the people of India.