In a world where security and financial stability can be difficult to obtain, most people turn to an investment strategy of some sort. Insurance is a huge part of this, and it’s worth familiarizing yourself with if you want to be involved in the industry.
Insurance is not merely an investment instrument but a comprehensive financial cover in the worst times. It’s always good to pray for the best but prepare for the worst. In this post, we will share the history and the evolution of the Insurance industry in India and how it started developing with time.
The Origins of Insurance in India
The origins of insurance in India date back to ancient times when it was mentioned in the writings of Manu, Yagnavalkya, and Kautilya. These writers talked about pooling resources to help people during the calamity, such as fire, floods, epidemics, and famine. This may have been a precursor to modern-day insurance.
The first commercial advent of the Insurance industry in India was through the Oriental Life Insurance company in 1818. It was started by a British East India Company in Calcutta’s presidency. But, it failed in 1834. In the following years, a few British insurance companies started operations in the country to serve Britishers and traders. In the late 19th century, insurance companies started operating successfully in India.
Many of the companies started insurance businesses in India during British rule. But after the independence of India, the government passed an ordinance that nationalized the life insurance sector. The life insurance corporation of India was launched in 1956 and helped the monopoly in the Indian insurance market.
The Growth of the Indian Insurance Industry
The Indian insurance industry has seen substantial growth in recent years. This is in part due to the liberalization of the industry, which has allowed for private sector participation. This has led to increased competition and innovation, which has led to better products and services for consumers.
Additionally, foreign companies have been allowed to enter the market, which has led to increased investment and growth.
Several milestones have been achieved by the Indian insurance industry, which demonstrates the size and growth of the sector. In 2000, the sector was valued at $22 billion, and by 2014, it had increased to $86 billion. As of 2015, the Indian insurance industry has seen substantial growth.
The Future of Insurance in India
The future of insurance in India looks bright, with the industry growing at an exponential rate. However, there is still a lot of work to be done to educate the Indian people about the benefits of insurance.
Fortunately, companies adopt new technologies like InsurTech to make it easier for customers to get onboard. InsurTech could reduce policy acquisition and renewal costs and even provide convenience to the customers and insurance company employees.
Insurance plays a key role in protecting the citizens and ensuring their safety. As InsurTech companies grow, they will undoubtedly continue to grow insurance penetration in India.
Final Words
The insurance sector in India has come a long way since its inception. It has evolved from being a mere facilitator of risk transfer to becoming one of the most important pillars of the economy. Today, it is one of the country’s most regulated and competitive industries. The future looks bright for the insurance sector in India, with more and more people getting insured every day.
