Brace yourself for more tectonic policy shifts and exponential growth in the insurance sector in the next 24 months, as the new IRDAI chief Debasish Panda is a regulator in a hurry. Panda is looking to usher in more reforms, remove barriers to entry, and steadfastly ease the compliance burden to catapult the industry to even greater heights. Don’t be surprised if the insurance industry scales to $500 billion Gross Written Premium (GWP) by 2027, notching a 34 per cent CAGR from the current $115 billion, if the recent reform tempo is maintained.

Sum Insured (SI) Vs. Sum Assured (SA) Customers may have come across the terms “Sum Assured” (SA) or “Sum Insured” (SI) in their policies. Mostly in all life insurance policies and in Personal Accident (PA) covers, the term SA is used to represent the maximum insured amount the insurance company has covered under such policies, whereas in the case of majority of the policies where properties and liabilities are covered, the term SI is used. The term “Sum Insured” has an underlying principle “indemnity” and indemnifying the insured means restoring the insured to the same financial position as before the event that gave rise to the claim. So, settlement of claims under indemnity-based insurances is a bit complicated as compared to Sum Assured claims which are also known as “benefit based” insurances.

The non-life insurance industry comprises of 24 multiline insurers, 5 Stand Alone Health Insurers (SAHI) and two specialised insurers, namely, Agriculture Insurance Co of India Ltd and ECGC Limited, thus totalling up to 31 general insurers. For the period April to September 2022. These companies together have logged an underwriting premium income of about Rs. 1,25,196 crores, showing a growth of around 15.31%. Out of this, the multiline insurers (general insurers) have contributed premium income of Rs. 1,04,672.46 crores with an accretion of 15.03%. SAHI have contributed a premium of Rs. 11,661.97 crores, showing an accretion of 26.73% and specialised insurers have underwritten premium of Rs. 8911.48 crores with an accretion of 5.18% over the corresponding previous financial year period.

In 2017 Lemonade, an Insurtech company reported a claim handling world record. The insurer reported a claim settlement speed record – 3 seconds and no paperwork. According to the insurer, a policyholder submitted a theft claim for a $979 Canada Goose Langford Parka on Dec 23, 2016. Within seconds, AI Jim, Lemonade’s artificial intelligence claims bot, reviewed the claim, cross referenced it with the policy, ran 18 anti-fraud algorithms on it, approved it and sent wiring instructions to the bank, informing the policyholder the claim was paid at replacement cost and closed.

Every organization, big or small uses a battery of Capital to make the business work. The capital includes cash, valuables, or goods to generate income for the business. Whatever be the business, the one thing in common is the involvement of people who make their capital work. Human Resource Management is the process of following events

The main function of the insurance is to provide protection against the probable chances of loss. In its social responsibility and providing relief in sufferings it is different from any other enterprise which are solely motivated by maximising profit. It is primarily business of mitigating suffering due to unfortunate events. Insurance today is inseparable part of social welfare in any country.