Many think that taking an Insurance agency is a Hard selling business. While a part of it is true that “This is a Business” but still it’s not that hard when you look at the size of our country in the form of population which is over 130 Crores and then compare it to the insurance penetration which is less than 5 %. So imagine the size of the Market.
While you are thinking about the size of the market, also think about the companies which are operating in Insurance Industry. With 24 insurance companies operating in life insurance business, the share of Life Insurance Corporation is 75 %.
With this above two points to think, you may be thinking that yes this is a good business opportunity. But you have something more to think about and that is the Government’s policy which adds to the lure of this business opportunity. Currently, Government's policy of insuring the uninsured has gradually pushed insurance penetration in the country. India’s life insurance sector is the biggest in the world with about 360 million policies which are expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per cent over the next five years. The insurance industry plans to hike penetration levels to five per cent by 2020. The country’s insurance market is expected to quadruple in size over the next 10 years. India’s insurable population is anticipated to touch 750 million in 2020, with life expectancy reaching 74 years. Furthermore, life insurance is projected to comprise 35 per cent of total savings by the end of this decade, as against 26 per cent in 2009-10.
The question arises, that will Insurance actually work as a Business? Will people invest in Life Insurance? Yes, they will; because, India continues to be a country of savers though larger portion of household savings are getting invested into non-productive physical assets such as real estate and gold.
But even then, the future looks interesting for the life insurance industry with several changes in regulatory framework.
World over it has been observed that the life insurance is a big savings vehicle along with banking so we expect the industry to fare reasonably well. Demographic factors such as growing middle class, young insurable population and growing awareness of the need for protection and retirement planning will also support the growth of Indian life insurance. The growth will be the natural outcome for now and years to come.
Add up all the above points and you get a business opportunity so lucrative that it is just waiting to be encashed by you by becoming an Insurance Advisor, Click Here to join as Life Insurance Consultant under the dynamic leadership of Mr. Rajendra Ithape