For a sector that the majority of Indians entrust their savings with, life insurance is easily an important indicator of India’s financial health. And true to this, the prevailing weak economic landscape has had an impact on the life insurance industry in India, as the overall intent to purchase polices has taken a hit. But despite the weak rupee, inflation and general concern over key financial indicators, Nielsen’s findings showed that life insurance penetration in India is up by three percent in 2013 to touch 66 percent.
This study analyses this rise, key drivers, challenges and influencers of the ever-evolving life insurance sector in India. It also brings to the forefront key insights and opportunities for insurers in this happening market.
Consumers today are looking to diversify their portfolio and there have been significant surges in fixed return investments and equity investments. While life insurance retains the highest penetration among financial products, the fixed return investments and equity investments categories showed more impressive growth in the 2013 figures.