Motor and health insurance to witness accelerated growth in FY2024-25

financialexpress.com:

With a demographic shift, rising disposable incomes, and a government actively pushing financial inclusion, the Indian insurance sector stands on the cusp of another promising year in 2024. Life, health and motor will witness more growth with evolving consumer needs. Statistics reveal a burgeoning middle class, which with its increasing purchasing power, is expected to comprise 47% of the population by 2030. Rising income will invariably lead to more awareness and affordability towards insurance in the times to come.

The landscape of motor insurance in India is undergoing a transformative shift, evolving from a reactive to proactive approach. Beyond the traditional considerations of premiums, this paradigm change is evident through the introduction of pioneering solutions such as Electric Vehicle (EV) insurance and ‘Pay as You Drive’ plans, strategically designed to address the contemporary market challenges. This shift not only signifies a technological leap within the industry but also reflects a fundamental change in the perception and approach towards motor insurance, aligning it more closely with the evolving needs and preferences of today’s consumers. Usage-based motor insurance plans are expected to catch more eyeballs this year – as customers who drive less can get higher discount benefits on the insurance premiums.

In the health insurance category, there has to be more even distribution of health insurance plans. The public healthcare system is facing issues with insufficient and inadequate funding, and hence, private insurance players need to fasten their distribution and outreach. Approximately 514 million people across India were covered under health insurance schemes in 2021, which merely covered 37% of the