Life insurance industry will witness significant growth
14 May, 2014 01:01 PM
The life insurance industry in India will witness a significant growth in the future with increase in working population and life expectancy, which are expected to drive insurance need in the country, feels Shivdutt Das, vice-president, product development, Tata AIA Life Insurance Company Ltd. (Tata AIA Life).

Das said, "The rapid increase in working population will also drive demand for savings and protection products." Insurance products have been the second largest component of household savings with 23% share of total household savings for the financial year 2011-12."

According to an industry estimate, by the year 2020 more than 100 million people will be added to India's working force. The total size of working population in India, which stood at 521 million in 2011, is estimated to grow to 627 million by 2020. Life expectancy, which stood at 67 years between the years 2006-10, will reach to 70 years in between 2016-20.

The per capita income of the country that increased by approximately 7% in between 2006-10, is projected to grow at approximately13% during 2011-20, suggests a McKinsey Global Institute report. The report also suggests that the cities will be central to future economic growth. Some of India's largest metro regions would become larger than many countries today. With 22.9 million population and $ 7400 Gross Domestic production (GDP), by 2030 Kolkata will be third biggest and prosperous city in Country.

Das added, "With the ongoing uncertainties in global economic scenario, income protection remains the key concern in today's environment. With this in mind, Tata AIA Life has launched a bouquet of solutions, compliant with the new IRDA guidelines applicable from 1st January, 2014, which provide income protection and satisfy the varying needs of the customer. All these solutions allow customers to avail higher protection cover than earlier. These new offerings also provide other benefits such as guaranteed returns, liquidity, compounding of returns and flexibility of plan duration."
Source : The Times Of India

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