Speaking at the valedictory session of the 4th South Asian Insurance Regulatory Meet and International Insurance Conference here, he said investments made by the insurance companies in various sectors amounted to Rs 30. 76 lakh crore by the end of 2016-17, of which over Rs 2. 40 lakh crore was in the infrastructure sector.
Vice President M Venkaiah Naidu today said the insurance industry in India was expected to grow to USD 280 billion by 2020 from USD 84.72 billion in 2017 as the country was poised for higher economic growth.
Speaking at the valedictory session of the 4thÂ South Asian Insurance Regulatory Meet and International Insurance Conference here, he said investments made by the insurance companies in various sectors amounted to Rs 30. 76 lakh Â crore by the end of 2016-17, of which over Rs 2. 40 lakh croreÂ was in the infrastructure sector.
"The insurance industry is expected to grow to USD 280 billion by 2020 as the country is poised for higher economic growth. The insurance market increased from USD 23 billion in 2005 to USD 84.72 billion in financial year 2017," the Vice President informed.
He said that an increase in FDI and government schemes to provide insurance cover to people, including farmers, had increased insurance penetration in theÂ country and had spurred the industry.
Naidu said that there was huge potential for growth due to a growing middle class,Â rise inÂ disposable incomes and greater awarenessÂ forÂ insurance coverage.
"As against the global average of 6.2 percent, the penetrationÂ rate ofÂ the Indian insurance sectorÂ is 3.39 percent," he said.
Stating that there was a need for insurance companies and regulators to evolve with changing times, he said the focus should be on curbing unfair trade practices and ensuring availability of policies and products to the common man at affordable prices.
As the volumes of subscribers grow, there was a need to prevent fraud and protect the interests of the subscribers who are paying premium, he said.
Cyber security and cyber liability insurance had become extremely vital in the present times withÂ cyber criminalsÂ increasinglyÂ hacking and stealing valuableÂ and sensitiveÂ data, he said.