Insurance industry is a growth-oriented industry globally. In India too, the industry has started to reveal the potential after liberalization of the sector. Not only the business has burgeoned multifold but also the awareness has risen in the Indian populace. The coverage in terms of the industry constituents, number of products and nature of coverage, has widened both in life as well as general insurance industry.
The altered scenario of the insurance market in India has brought in new challenges as well as opportunities. There is an entry of a number of new players in the market offering new and differentiated products and services. It has also provided a wider choice to the public to choose form a rich and varied menu of insurance and retirement products. At the same time, the efficient functioning of the industry calls for professionally equipped and properly trained personnel with understanding of the nuances of the new products and services to spread the message of insurance. These professionals can help the public appreciate the need for personal financial planning, estate and retirement planning.
India, the second most populous country, is ranked only as the twenty - third largest insurance market in the world. Inspite of the fact that gross domestic savings constitutes 26% of GDP, life insurance premium accounts for less than 4% of the same. A market currently estimated at about $ 8 billion is expected to boom to $25 billion by the end of 2010. Many international studies have estimated that the insurance industry in India can grow by over 125 percent in the next eight to ten years. In fact, India has been identified as one of the two fastest growing insurance market. The figures loudly talks of huge untapped potential in the Indian insurance market.
The insurance reforms being taken by the Government and the Insurance Regulatory and Development Authority (IRDA) will result in dynamic changes. The insurance market has already been thrown open for private players - both domestic as well as foreign. Several global players have also swarmed the market, in alliance with Indian partners.
The landscape has also broadened for professionals willing to serve the industry. For chartered accountants also, who have multi-pronged dexterity, financial and technical acumen and interpersonal and communication skills, the scope of services to the industry in more prolific manner, has increased. Chartered accountants have been associated with the industry since long; the transition to a liberalized regime has extended the horizons.
While insurance as an industry and a sunrise sector as a whole is of immense opportunities, it is perceived that it offers a lot of promising service areas for Chartered Accountants.