LIC Chairperson said that insurance companies should work towards building trust and Insurance Regulatory Authority of India (IRDAI) should implement risk-based solvency mechanism.
When it comes to insurance penetration, there is a need to revisit where we went wrong, said MR Kumar, Chairperson, Life Insurance Corporation (LIC) while talking to CNBC-TV18.com.
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"The protection gap in the annuity business is increasing. People are not going for an adequate annuity protection," he said.
He added that insurance companies should work towards building trust and Insurance Regulatory Authority of India (IRDAI) should implement risk-based solvency mechanism.
Speaking on the same, IRDAI's chief Debasish Panda said that penetration gap in India is huge at 83 percent and the challenge is to see if India can be fully insured by 2047.
"We need efficient tech based insurance distribution. Industry has been growing at 11 percent CAGR and need to show how it can grow faster," he said.
He added that more than 50 percent vehicles are still uninsured.
"Home and property insurance is not adequate. Every individual should be covered for his life and asset. There is a need for efficient tech based insurance distribution," Panda said.
According to him, distribution channels will have to become more digital.
(Edited by : Anshul)
First Published: IST