Insurance sector outlook 2020

India’s insurance sector had an eventful year in 2019, and the industry leaders expect an exciting year ahead in 2020 with host of product offerings and regulatory changes. Here are some of quotes of insurance industry leaders’ outlook for 2020:
 
 
 
Tarun Chugh, MD & CEO, Bajaj Allianz Life
“Indian life insurance sector has seen robust growth in 2019 and I expect this momentum to continue in to the early months of 2020. However, the economy’s pace will play a key role in ensuring our industry’s growth rate is sustained into the later months of the new year. The steps our regulator took towards ensuring more transparency for customers, along with opening up innovation for the industry (sandboxing) will come together in the new year to benefit customers with more value-added and simple products. 2019 was also a lot about digitisation across all service aspects within the industry. I look forward to 2020 being about new age products and cutting edge technology to truly enhance the customers’ experience with the industry”
 
 
Sanjeev Mantri,  Executive Director, Retail, ICICI Lombard General Insurance Company Limited
“We believe that the year 2020 will start on a strong footing from a global perspective as the uncertainty around several aspects such as US-China trade escalations or Brexit should subside. On the domestic front as well, the various policy measures already taken by the stakeholders should bear fruit leading to improved consumer sentiments. For the non-life insurance industry, this will be positive as new vehicle sales should rise after a declining trend observed in the past year. On the other hand, segments such as health insurance should continue to grow as the younger generation becomes more aware of lifestyle diseases and secures itself with appropriate health covers. We also hope that the Union budget to be announced in February has measures that add more capacity to the consumer’s wallet, thereby driving consumption demand. This should aid sectors such as real estate, consumer durables influencing demand for segments such as home insurance. All in all, 2020 should bring with it positivity and hope for the world and India in particular.”   
 
 
Prasun Sikdar, MD & CEO, ManipalCigna Health Insurance
“Health insurance consumers had an eventful 2019, as they were presented with better health insurance policies, wider coverage for their pre-existing illnesses, and ease in premium payment options. Interestingly, several changes in the conditions of coverage for existing health conditions has been done in favour of policyholders. The standardization of health insurance is expected to bring uniformity in interpretation as well as simplification, and ease of understanding of policies. This would go a long way in reducing grievances in the industry. Insurance companies have improvised its services for customers by adopting cutting edge technology, which is further anticipated to gain momentum in 2020. In the year ahead, the stage has also been set for covering mental health illnesses that would be brought under the ambit of health insurance by October 2020. Insurers may provide premium discounts for policyholders living a healthy and fit lifestyle, while consumers should expect new category of products covering ailments that will be part of the health insurance portfolio”.
 
 
Mr. Kamlesh Rao, MD & CEO, Aditya Birla Sun Life Insurance
“In my view the year that went by was good. In a year, where the economy was turbulent and industries were struggling for growth, the life insurance industry remained resilient and continued to generate growth at the rate of 15-16%. Also, for the first time the overall size of the protection business for the industry went up. Protection being the fundamental proposition of the sector, the growth augured well both for the customers and the industry. 2019 was also a year of disruptions and transformations, the regulatory changes in products was a huge step towards customer centricity. While, the companies had to bear some dip in the margins but overall it was beneficial for the customer and a win-win for the companies too. Another milestone was the introduction of the product suitability theme which will unfold in 2020 and will be something to look forward to. It will address one of the biggest pain areas of the life insurance sector and will aim at setting right the customer selling process. While, the year witnessed several positives, the number of new distributors remained stagnant which was a big reason to worry. However, the direct business across the industry went up, which is a good sign as it allows the insurance companies to offer interesting online products benefitting the customers.  While we sign-off the year on a positive note, the year ahead is set to offer a mix of opportunities and challenges. With one of the biggest reinsurers changing its rates of protection plans significantly, it is set to have some bearing. Whether the protection policies for customers will become dearer or the insurance firms will have to compromise on the margins of their protection business, will ascertain the penetration and growth of the segment.  Amongst the highlights of the year, this happening at the end of the year will be something to watch out for.”
 
 
Ashish Kumar Srivastava, MD & CEO, PNB MetLife India Insurance Company Limited
2020 is going to be yet another important year, for the life insurance sector in India. The fundamentals underlying household savings are expected to help sustain growth in 2020, however, the sentiments will be impacted if India's economic growth continues to be slow. The year 2019 saw the sector witness higher profits and business expansion by selling products that promise competitive guaranteed returns. However, a reversal in the interest rate cycle may hamper growth for the sector. Another significant milestone for the Life Insurance industry this year was the IRDAI annual report highlighting how the share of women has increased to 36% in the number of policies and 37% in the First Year Premium in FY2018-19, as compared to 32% on both the counts in FY2017-18. There has also been a constant rise in the new age customers opting for online insurance policies and companies focusing on the segment. These statistics are a clear indicator of the changing landscape of the life insurance industry in India. The needs of the customer are changing and life insurance companies need to adapt and enhance their capabilities to meet them. Innovation and focus on the customer, along with Regulatory push will be key to ensure that India’s Life Insurance industry is successful and future-ready.”