Life insurance: The resurging giant

Insurance in recent times has turned out to be quite a life saver for people who have invested in it. However, speaking of the state of Indian insurance segment, funds are continuing to flow in, thanks to the pre-existing unit-linked insurance plans. The practice has fetched big returns to life insurance players plainly because of the fact that investors are anticipating better returns on account of the so-called resurgence of Indian economy.

With life insurance schemes going great guns, the possible nemesis of slowdown is nowhere to found. However, the industry experts still believe that it will take sometime for market to actually recover from the damage that it has incurred in the past fiscal.

Already Life Insurance Council of India (which is the industrial body of 22 life insurance companies) has declared of a better year in the waiting, as the insurance business for life has already amassed Rs. 12698 crores as renewal premium for Ulips for the quarterly period of April-June of this financial year. The figures undoubtedly, are encouraging since premium collection which is a primary source of revenue for insurance industry hasn’t been that good.

If that was about insurance for life, health insurance market too has seen a surge in its overall business. The so-called surge can be credited to the showing up of Swine flu. Yes, the pandemic has certainly got the stationary business of players, moving. With Swine flu cases being still reported, many of the insurance players are deeply brainstorming to launch special insurance products that highlight the need of protection against flu and in the mean time also provides monetary assistance in the wake of any unfortunate contraction of the disease. The idea is definitely result-oriented since the epidemic is very much in picture even now and if it is this approach that can actually help them in cashing on to the situation. If the initiative proves successful then the whole health insurance industry can expect a non-sponsored bail-out package.

Already IDBI Fortis Life insurance has drawn the first blood by announcing that the company will be paying out policy claim of the insured’s nominee if the former dies of Swine flu. Thus, the race is quite apparent. Moreover, with rainy season coming late to Indian cities, chances of this pandemic spreading into each corner of the country has increased drastically. This is the reason why government has asked public hospitals to be ready with state-of-art medical treatment and equipments. Also the fee factor has also been made nominal by them. However, with private hospitals too being asked to join the league, health insurance business can certainly some good days ahead.

Thus, it is quite evident that insurance sector is finally seeing some green shoots which overall symbolises harmony in the business scene. Moreover, with such reports cropping up, is manifestation of the fact that the beneficiary party is not only the players but also the end-users.

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