There are different forms of insurances, most omnipresent of them is the life insurance, its’ been 100 years that life insurance made its debut in India, still the concept and its repercussion are not widely understood by majority of the population as it ought to be in this era. So what is the need of hour is to bring about the comprehensive awareness program so let us defined what Insurance is and what its different type are. There are mainly two types of insurance, life insurance and general insurance. Life insurance is basically a contract that pledges payment of an amount to the person assured or his nominee on the happening of the event insured against. General insurance is basically an insurance policy that protects you against losses and damages other than those covered by life insurance. Some of the examples of the kind of products offered by the general insurance companies include home insurance, car insurance, health insurance, student medical insurance. As per the IRDA, there are total 52 insurance companies in …show more content…
But there are many challenges for insurance companies; to start with, knowledge about insurance products is low compared to the banking sector product, except for products like motor insurance where insurance is mandatory by law. To attract customers, premium discounting was the option many insurers resorted to and that impacted the quality of risk underwritten and profitability. Also considering the sparsely spread population of India especially outside tier 1 and tier 2 cities, making it difficult to reach out to potential buyers and serving them becomes challenge. Despite latent potential, to achieve top line and bottom line performances, insurer will face lot of challenges. Also insurers are to meet the increasing dynamic need of price conscious customer, enhance risk management abilities and also meet regulatory