Insurance hustle
Life insurers are anticipated to encounter margin strain during the final quarter of the fiscal year 2023-24 (Q4 FY24) as a result of a heightened base and a shift in product composition.
The increase in the adoption of high-value non-participating policies in March 2023, spurred by the Union Government’s adjustment in tax regulations, prompted a transition towards ULIPs and other participating offerings.
Mahesh Balasubramanian, Managing Director of Kotak Mahindra Life Insurance Company, underscored the significant disparity in life insurance penetration compared to other banking, financial, and insurance products like banking or mutual funds (MFs).
India faces a substantial protection gap, estimated at around 83 percent, with an approximate underprotection of life valued at $16.5 trillion. Additionally, only a fraction of the Indian population has pension coverage, leading to a projected total pension gap of Rs 55 trillion by 2050. These factors highlight immense growth opportunities in the upcoming decade for the life insurance sector.
