Need to look at the Insurance Business through the Prism of Financial Inclusion and Employment Generation: Rajiv Takru
16th Edition of CII Insurance Summit took place here today. The Summit with the theme “New Directions, New Hopes” stirred thinking and exchange of ideas on the way forward for the evolving Indian insurance industry.
Addressing the Summit, Mr T S Vijayan, Chairman, IRDA said, “The fundamental principle of insurance is trust. An insurance company is supposed to be the trustee of the pooled money. Hence the concern should be to enhance the security of the customer.” He also stated that enhancing the timeliness of the settlement is also important. Further highlighting the importance of increasing insurance penetration, Mr Vijayan underlined the need to have low ticket and savings products while also cutting on distribution expenses.
Speaking on the way forward, Mr Vijayan stressed on developing productivity and professionalism in the sector. He added, “Technology adoption would become important if we adopt a low ticket policy.” He also suggested that listing on stock exchanges of insurance companies would help bring in greater corporate governance and transparency.
Mr Rajiv Takru, Secretary - Financial Services, Ministry of Finance brought home the significance of insurance from financial inclusion and employment generation point of view. He stressed on quality, service and delivery of insurance products and alluded that “Insurance is not pure business; there is also social spirit behind it. The guiding principle behind insurance is much more beyond making profits.” He also emphasized on the necessity of consumer education and agency training. Mr Takru also stated that given the phenomenal number of people involved in the insurance business, we have a responsibility towards their training, development and also their livelihood.
Mr Analjit Singh, Chairman, National Committee on Insurance & Pensions, CII stated that the insurance industry is going through significant changes and challenges over the last few years while the monopoly of public sector has come down and the sector has witnessed massive transformation.
Addressing the august gathering Mr Sanjiv Bajaj, Co- Chairman, National Committee on Insurance & Pension, CII and Chairman 16th Insurance Summit viewed that we need to move to a more realistic pricing model and customers need to be incentivized through more effective fiscal benefits. Mr Bajaj also stressed on the need for innovation and customization for greater financial inclusion along with
Concluding the inaugural session, Mr Ashvin Parekh, Senior Expert & Advisor - Financial Services, Ernst & Young LLP expressed hope that there would be more concentrated and joint efforts by all stake holders to take the insurance industry forward and keep the sector more viable.
The CEO’s Panel Discussion threw light on several concerns pressing the industry, viz. the agents’ remuneration and training, enhancing depth and width of the market, simplification of products and processes and adoption of technology with a human face. The panel moderated by Mr Sanjiv Bajaj comprised of Mr Rajesh Sud, Managing Director & CEO, Max Life Insurance Co Ltd, Mr Sandeep Bakhshi, Managing Director & CEO, ICICI Prudential Life Insurance Co. Ltd, Mr G Srinivasan, Chairman-cum-Managing Director, The New India Assurance Co. Ltd, Mr Joydeep Roy, Chief Executive Officer & Wholetime Director, L&T General Insurance Company Ltd, Mr Jayant Dua, Managing Director & CEO, Birla Sunlife Insurance Company Ltd
The Summit attended by over 700 industry heads also witnessed the release of CII-E&Y Report titled “New Directions, New Hopes”.