Political Factors Affecting Insurance Industry

Political factors affecting the insurance industry:

 Insurance business in rural / social sectors: The penetration in the rural India is far less and hence it is a very good opportunity for the insurance companies and this can be the best aspect for the future of insurance sector in India.

 Capital requirement: the requirement of capital is a factor that can actually turn it around for companies or players in this industry.

 Renewal of registration: The registration regulations of the government and the regulatory authorities such as IRDA can have a significant effect on the manner the business is carried about.

 Investment of funds outside India: The premium that has been collected from the policy holders has to be invested

 Lifestyle: The way the people go about their lives and the manner they conduct themselves in the society has a lot of bearing on the insurance sector .

 Education Level: The education level of the people in the country is also important because the more the literacy then more will be the jobs and more will be the policy holders and more will be the growth for the insurance sector.

 Social benefits: The social benefits from the insurance sector for the policy holders and the people can have a considerable effect for the companies in the industry.

The technological factors affecting the insurance industry:

 Maintaining the database: It is very crucial for the companies to maintain the data because it depends on how the data is stored from their side and then it depends on how they make use of it.

 E-business insurance in India: Electronic insurance has made the headlines in the country because the companies have improved their service through offering the best of products and making the accessibility higher and also

Low investment

India is one of the countries in Asia Minor expense compared to buying insurance (China, which went from $ 36.3 per capita insurance products and India increased from USD 16.4)

2. Predominance of public sector

Even after the liberalization of the insurance industry, insurance companies’ public sector have continued to dominate the insurance market.

3. Promotion and Barrier

In the long term, other forms of non-price competition and advertising aggressive wars are likely to lead increased costs, eventually damage the interests of consumers.

4. Old tariff structuring

A key challenge for the sector of non-life insurance in India will be to reform the existing rate structure. From a pricing perspective, the non-life segment in India is still heavily regulated

5. Facilities

Reinsurance is only provided by GIC. Therefore limited facilities hinder the insurance sector.

OPPORTUNITIES:

1. Creation of stronger demand

The improved economic fundamentals will support India's fastest growing. The per capita income in the coming years, which will result in increased demand for insurance products.

2. Strong Future growth

Strong growth can be sustained for 30-40 years before the market reaches saturation. There is plenty of room for growth, personal accident, health and other types of