The
four years that we have had of a liberalized insurance
domain, present contrasting pictures of growth and
consolidation on the one hand, and insufficient understanding
and lopsided priorities on the other. Unless the players
realign themselves positively, the real purpose for
which the industry has been opened up would be hard
to realize. While the performance in some areas has
been exceptionally good, others need to be addressed
by all the players to ensure an overall growth.
The
Indian insurance industry is going full steam now,
in its new, rejuvenated form. There are several players
in each of the classes competing with each other to
grab the best share and create a niche for themselves.
While the going has been good on the whole, there
are some areas that need immediate attention of the
forces involved. In a competitive regime, some of
these trends are, perhaps, inevitable . Care should
be taken, however, that these tendencies do not go
out of reach. The best thing that has happened is
the overall freshness that is perceptible as regards
the insurance business as also the other things attached
to it, like the distribution channels; new styles
of service delivery; the genesis of new products on
the horizon; and above all, a whole new set of opportunities
for employment in the insurance sector.
The
market share of the public sector giants has been
progressively showing a declining trend and is likely
to get stabilized at a certain level, sooner or later.
This, however, cannot be taken as an erosion of their
business levels or a drop in their market share. In
a competitive regime, this is what one would expect
and if the benefits of the competition are to reach
the customer, no single player should hold sway on
the entire industry. As long as the overall size of
the cake is being enlarged, it can be construed as
positive growth. Presently, we are placed at a double
digit percentage growth, year on year, and it has
never been so good for the Indian insurance industry.
Besides, we can boast of the largest percentage growth
in the global insurance market, may be with the exception
of China. This itself speaks volumes of how the industry
is shaping in the country. Thus, one could say, a
perfect launching pad has been created for the insurance
industry from where to take off to global standards.
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