Insurance and 5 Global New Trends

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INSURANCE AND IT’S NEW TRENDS. ANJALI MAKHIJANI Symbiosis Institute of Health Sciences (MBA-HHM 2016-18)

Transcript of Insurance and 5 Global New Trends

INSURANCE AND IT’S NEW TRENDS.

ANJALI MAKHIJANI Symbiosis Institute of Health

Sciences (MBA-HHM 2016-18)

What Is Insurance ?• Insurance is a contract between an individual (the

policyholder) and an insurance company.• Risk pooling technique

Types Of Insurance

1. Life Insurance2. Health Insurance3. Motor Insurance4. Home Insurance5. Personal Accident Insurance6. Travel Insurance7. Commercial Insurance

Overview of Indian Insurance Industry• The insurance industry of India consists of 53 insurance companies of

which 24 are in life insurance business and 29 are non-life insurers.• Insurance penetration in India is likely to cross 4% this year

(ASSOCHAM)• The number of lives covered under Health Insurance policies during

2015-16 was 36 crore which is approximately 30 per cent of India's total population.

• The life insurance industry reported 9 per cent increase in overall annual premium equivalent in April-November 2016.

• The general insurance business in India is currently at Rs 78,000 crore (US$ 11.44 billion) premium per annum industry and is growing at a healthy rate of 17 per cent.

• India’s life insurance sector is the biggest in the world with about 360 million policies which are expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per cent over the next five years.

Health Insurance in India• Historically focused on selling hospitalization based insurance

covers.• Market liberalization in 2001 increased the number of insurers

offering health insurance capacity • Aggregation of hospitals into networks by specialists TPAs

(Third Party Administrator) • Entry of Specialist Health Insurance companies between 2007

and 2013• Spread of Social Health Insurance Schemes (2007-13)a) Central Government Health Scheme (CHGS)b) Employee’s state Insurance (EMI)c) Rashtriya Swasthya Bima Yojana (RSBY)

Challenges: Health Insurance India

• Out of pocket expenditure-60% of total expenditure on Health

• Insurance coverage for chronic health conditions• About half the population of the country does not have

access to any health financing schemes• RSBY- largely restricted to inpatient coverage and their

target audience is below poverty line consumers

Top 5 New Global Trends in the Insurance Sector

01- Increased use of Internet of Things by insurers

02- Usage Based Insurance

03- Using Big Data to improve claim processing Capabilities

04- Increasing Demand for Cyber Insurance

05- Usage of mHealth Apps by Insurers