UIIC AO 2016 - Essay - Indian Insurance Sector needs innovation

Hello and welcome to exampundit. Here is the first Essay for UIIC AO 2016 about Indian Insurance Sector need Innovation. We have provided two versions of the essay which are written by Gaurav Monga and Govinda respectively.

Gaurav Monga – Indian Insurance Sector needs innovation

The Insurance industry of India comprises of various general insurance companies and Life insurance companies. LIC is the biggest public sector company facilitating their services to millions of people in India and in other parts of the world. On the other hand, non-life insurers are rendering their best in other sectors from fire insurance to vehicle insurance, property insurance, marine insurance and so on. Now, Despite strong efforts by the Indian government in past many years, India still remains slow in the market. The reason behind this slow growth could be because of lack of investment opportunities and customer focus. Though, Indian government come up with various insurance awareness programmes benefiting a person whether living in urban areas or rural area. The star of marked improvement is still not up to the level. There are various insurance products available in the market but either they themselves need innovation or the required market or their insurers or agents. The demand for these products is likely to be increase in future due to growth of household savings, purchasing power of a person and India's working population. Now, this demand can only be fulfilled by completely innovating the "Indian Insurance sector " and this can only be possible, when public & private sector both concentrate more on growing of financial sector of the industry, removing inefficiency in the departments and maintain the level of competition between them, keeping in mind their orderly growth. Growth of specific sector like motor insurance, or health insurance, or even finance re-insurance can bring a drastic and significant change in this market. insurance fosters investment and innovation by creating an environment of certainty. An insurer contributes towards the modernisation of financial markets. By innovating insurance sector, Indian government can help its people through their life. Moreover, as global economy is on rapid growth, these innovations in insurance industry and public institutions are essential. Insurance sector play a fundamental role in any economy. It provide a efficient way to support the country. Thus, insurance plays an important role and contribute more towards the society. Therefore, it is very important to innovate this sector keeping in mind "Customer Pull"-customer interest, satisfaction.


Govinda – Indian Insurance Sector needs innovation

Innovation, upgrading the process of ways of doing business or making possible changes which results in increase in output of the company. In India insurance sector have major part of FDI which is 49%. It plays vital role in improving countries GDP. After the liberalisation there have increased foreign companies in India through joint venture or in partnership. To sustain in competitive market, empowering the business, to make efficiency in process companies needs to makes possible changes in products, process, technology, customer relation, distribution. These are some factors needs to be innovate. By exploring new products in market for customers or innovating something new in existing product on the basis of customer’s requirements & needs. By implementing new technology in the business which makes process easier, simple and creates transparency between the company & customers. Also by adopting new distribution channels like bancassurance, authorised brokers or agents, internet. Which makes easy availability of products in the market. Customer relation is also important part of the process. To maintain healthy relation, feedback ,redress of grievances .The impact of the innovation leads three main courses in business those are Empowering ,sustainability & efficiency. Empowering, increases the capacity, altitude, credit and most important it creates trust amongst customers. Sustainability, for competing in market to beat the competition & to lead towards growth. Efficiency, making business efficient for future challenges and in the process. From liberalisation India’s insurance sector spurs in less time. For maintaining position in this competitive market India always needs to come with something new in market by innovating.

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