Mumbai, Jan 16 : Forecasting the significant surge in the field of insurance sector renowned financial institution Dun and Bradstreet reported that the rise of Insurance sector will give a push Indian economy.
According to a recent report by Dun and Bradstreet it is said that Indian insurance sector is set to mark a significant growth in the coming years. Citing the example of rising financial literacy and favourable eco system for trade and business the report has predicted both qualitative and quantitative improvement for insurance sector in India.
Dun & Bradstreet is an American business services company headquartered in New Jersey, that provides commercial data to businesses on credit history, business-to-business sales and marketing, counterparty risk exposure, supply chain management, lead scoring and social identity matching.
The report 'Insurance Sectoral Outlook 2017' said with liberalisation of Foreign Direct Investment norms for the sector, many foreign insurance firms have entered into India to explore the untapped potential of this industry. The report gives credit to the relaxation of FDI norms which resulted into the increased flow of foreign capital.
Hailing various initiatives of central government the report further stated that due to lower level of penetration, favourable demography, initiatives like 'Pradhan Mantri Jan-Dhan Yojana' for enhancing financial inclusion, rising financial literacy along with increase in domestic savings consequent to rise in per capita income are expected to support the growth of insurance sector going forward. It further added that, the favourable regulatory environment in the country is also expected to help in fuelling growth of the insurance sector.
Underling the importance of schemes targeting derived section of the society it mentioned that the polices like 'Rashtriya Swasthya Bima Yojana' (RSBY), 'Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) are expected to help in penetration of insurance sector in lower and lower-middle income population, which currently does not possess insurance cover.
Taking a one step ahead for investing in India companies like UK-based reinsurance Lloyd is expected to set up its branch in Mumbai in 2017. In addition to this, US-based Reinsurance Group of America Incorporated, Germany-based reinsurance companies, Hannover Re and Munich Re, Switzerland-based Swiss Re and French reinsurer SCOR SE also received approval from the IRDA to establish their branches in India.
With more companies entering the sector, competition as well as operational efficiency is expected to rise, which would raise the penetration in the country, the report said.