2. How we create value
  3. External environment

EXTERNAL ENVIRONMENT

RESPONDING TO
DYNAMIC TRENDS

The Indian life insurance industry is one of the fastest growing markets and features among the top 10 globally in terms of premium. Backed by regulatory reforms and adoption of digital technologies, the industry is witnessing improved transparency and increased innovation. Further, the growing awareness of the need for protection products in navigating through life’s uncertainties is likely to catapult the industry to a much higher growth trajectory.

RISING DISPOSABLE INCOME WITH EXPANDING MIDDLE CLASS

India has emerged as an attractive market for the insurance industry, driven by its favourable demographics – young, aspiring and growing working age population. With increasing life expectancy, the share of working population is expected to reach 40% by 2030. Further, rising disposable income is likely to drive demand for savings and investment products.

India: Favourable demographics

Source: United Nations World Population Prospects, 2019

Our response

Our products cater to different types of customers across age groups. We are developing innovative, need-based products to capture a sizeable market share of the younger population.

FINANCIALISATION OF SAVINGS

India has been witnessing a rapid shift away from physical savings (gold and real estate) to financial savings. With the government’s thrust on economic formalisation, demand for savings and protection products is on the rise, with asset diversification forming a key component of effective financial planning for the future

Financial savings on an upswing (%)

Source: CSO, Reserve Bank of India, Handbook of Statistics on Indian Economy

Our response

We are working proactively to increase awareness of the benefits of life insurance by leveraging our pan-India reach. We engage with customers through multiple channels to enable informed financial decision-making.

UNDER-PENETRATION OF LIFE INSURANCE IN INDIA

Penetration of life insurance products in India is relatively low compared to several advanced and emerging Asian peers, which indicates significant headroom for growth. Concerted industry efforts, complemented by a robust regulatory environment and a favourable shift towards the perceived importance of protection products, are likely to drive insurance penetration going forward.

Premium as a % of GDP 2019

Source: Swiss Re, sigma No 4/2020

Our response

We are launching innovative, need-based products, with a special focus on protection products, to strengthen our market position and drive sustained growth.

FOCUS ON DRIVING DIGITALISATION

Digital technologies have emerged as a key growth enabler, providing increased convenience and transparency. Further, the rapidly rising internet penetration, proliferation of smart devices such as mobiles and the government’s ‘Digital India’ initiative are driving innovation in the insurance space as well. Today an increasing number of customers are accessing digital channels for availing their insurance needs.

India’s growing internet economy (US$ in billion)

Source: IBEF – Ecommerce

Our response

We have been a leader in driving digitalisation in the Indian insurance industry. We continue to invest in the best available technologies to improve processes, train and reskill resources, and strengthen our digital platforms for customers, distributors and business partners. We also leverage data analytics tools for deriving actionable insights to elevate customer experience.

Copyright © 2020 SBI Life Insurance Company Limited . All rights reserved.

Integrated Annual Report 2019-20