Thanks for your views. While I agree on above but one can think this way that any company would give what it’s customers want, and if at a lifecycle stage of an economy, people need savings more than protection, then so be it…
But, so much so far…the product mix of most insurance firms are rapidly evolving…and so would the psyche of Indian customers…
A person would need protection only when one has something to protect…and to have something to protect, one would need savings first…and thus the lifecycle…
So, while you are absolutely right in the product mix part and the Indian psyche part, we do not know how the next stage of this life cycle would be…we can take some clue from developed economies which are ahead of us in that lifecycle and I see that protection is significant there…
Having said that, i think life insurance as a sector is not doing that well in US also…not sure why…maybe now the lifecycle of their economy is beyond protection and more towards annuities or Direct equity? And interest rates are too low for annuities to make decent money for insurance companies? Insights welcome…
And general insurance to do well over long term would need tremendous management skills… something I am wary of in anything to do with Finance…
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