Life Insurance Sector Has Not Even Touched 5% Of Its Scope In India, Says BC Patnaik

The life insurance industry has a huge scope, and we have not even touched 5% of that scope, according to BC Patnaik, a member (life) at the Insurance Regulatory and Development Authority.

This is despite the fact that the life insurance industry is trying to recover from the fall in demand for high-ticket non-par policies due to taxes imposed on payouts from policies whose premiums exceed Rs 5 lakh from April 1, 2023 onwards.

Most insurers are confident of more than double-digit growth, he said on the sidelines of the National Insurance Academy annual event held on Oct. 3.

Citing the figures calculated by Swiss Re, he said that there is a huge mortality protection gap in India of around Rs 1,320 lakh crore, and people are now recognising the importance of having insurance.

He expects the life insurance industry to grow at a steady pace, citing the huge scope and potential for growth. The regulator, as well as both the life and general insurance councils, are working on increasing insurance awareness, and campaigns are already in force, said Patnaik.