Insurance sector current trends,

• Strong demand in the market,

Due to the pandemic, there is growth in the number of people and businesses seeking Insurance,
Innovative products and distribution channels are serving growth. There is a high penetration rate for
digital platforms, with an average of 90% using digital platforms at least once a week.

• New Policy support that are helping Insurance sectors,

Union Budget 2021 increased FDI limit in insurance from 49% to 74%.India's Insurance Regulatory and
Development Authority(IRDAI) has declared the insurance can be provided by Digilocker, of digital
insurance policies by insurance firms.

• Corona Kavach and Corona rakshak

During the pandemic crises, the IRDAI has mandated all general and health insurers to start offering,

"Corona kavach" -an indemnity based health plan and

"Corona rakshak" - a fixed benefit health insurance policy to their customers.

These policies are expected to cover the hospital and medical expenses of covid 19 patients.

• Growing investments in the insurance sector,

In February 2021, the Finance Ministry announced to introduce Rs. 3,000 crores (USS 413.13 million)
toward state-owned general insurance companies to increase the overall financial health of companies.

Challenges faced by the Insurance industry,

As the insurance industry is dependent on other industries and therefore unless the overall economy
bounces back on track, or the insurance industry finds business previously uncovered areas the industry
is likely to struggle in maintaining its momentum.

Challenges which is more of an opportunity in Insurance

sector,
Insurance reach or range is still low in India. Overall insurance penetration (premiums as % of GDP) in
India was 3.76% in FY20, providing a huge underserved market. awareness of health and other insurance
products among rural population is much limited when compared to the urban population, many are
unaware of Insurance for the agriculture industry.