Insurance industry

In this financial turmoil, insurance industry is the least affected in financial services sector. Insurance is divided into two types, general and life insurance. For India, the premiums collected in 2007-2008 is 4.1% of GDP unlike in other developing countries where it is anywhere between 8-9%. The latest Insurance Regulatory Authority of India (IRDA) report available is for FY 2006-2007. Worldwide insurance premium amounted to US $ 3723 billion in 2006 comprising of US $ 2209 billion in life and US $ 1514 billion in general insurance business. At this level the premium has increased by 5.0 per cent in real terms in 2006 as compared to 2.5 per cent in 2005. The growth in life insurance premium was about 7.7 per cent which is the highest since 2000.
In emerging markets, the growth in life insurance tripled to 21.1 per cent from 7.5 per cent in 2005. Hence, Indian life insurance industry is a great opportunity to explore. The industry recorded a premium income of Rs.156,041.59 crore during 2006-07 as against Rs.105,875.76 crore in the previous financial year, recording a growth of 47.38 per cent .
The industry is challenged by creative solutions in technological and distribution front. So far, Insurance industry in India was mainly an obligation we had with the insurance agents. But things are fast changing as fast as India’s economic fortunes. The industry is expected to benefit a lot with the growth in Indian economy. The industry is long ignored by b-school graduates owing to the nature of the industry and brand “insurance” itself offered. However with the entry of more private players and exciting opportunities, there is enough scope for MBA graduates to try out their hand especially in marketing and consulting areas. It is very evident that if you can sell insurance product, you can sell any product as insurance is a concept which requires sharp marketing skills. The future growth of the industry will be mainly driven by product innovation, unconventional distribution models and strategic community participation. There is enough scope of consultants in driving the growth in terms of product strategies, exploring new markets, devising new distribution models, tapping the low income segment etc.. So consultants grab this unique opportunity.