Fire, agriculture insurance space may see changes due to growth in property and infra

In an interview with CNBC-TV18, Devesh Srivastava, CMD of General Insurance Corporation of India Limited (GIC), said that most of companies are considering agriculture insurance because it’s a big-ticket item.

He said, “Both (fire and agri insurance) will see a change in the coming 2023-24 because of the huge impetus being given by the Budget for infrastructure, we will see growth there. For agriculture also, if that new scheme comes in and now more and more companies are contemplating writing agriculture because that is big-ticket that will again see good growth.”

However, it's not just agriculture insurance that is gaining traction. The reinsurance sector is also expected to benefit from the impetus given to infrastructure in the budget. As the government invests more in infrastructure projects, it's likely that the demand for reinsurance will increase as well.

When it comes to direct insurance, motor, and health insurance form the bulk of the sector. But it's the COVID-19 pandemic that has had a significant impact on the industry. The virus prompted many Indians to opt for health insurance products, recognizing the importance of having adequate coverage during a health crisis. This has led to a surge in the demand for health insurance policies across the country.

Srivastava also noted that there has been a paradigm shift in the thought process of the middle class in recent years, which has helped the insurance sector grow. With increased awareness about the importance of insurance, more people are choosing to purchase policies to protect themselves and their families.

One area that has seen significant growth in recent years is the retail health insurance sector. With the rise in demand for health insurance products, more companies are offering policies that cater to individuals and families. This has led to increased competition in the sector, ultimately benefitting consumers who have more options to choose from.

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