International Journal of Commerce and Management Research

The Indian economy riding on the wave of populist sentiments in electing a majority government and is poised to take major strides forward. Insurance sector is one of the key factors expected to hold sway in India’s march towards establishing a global economic powerhouse.

For every GDP driver that the government is looking to improve there are risks strewn across the business landscape. In India’s quest to move up the value chain of insurance vis a vis innovation we are glossing over the challenges arising out of striving, managing and guarding data, the rampart of our thrust towards economic premiership in a globalised interconnected world. We are carrying forth the flag of ‘Made in India’ but this race to be sought after provides of services and products we may be guilty of being lax when it come to understanding, evaluating holistically or in most cases even considering the risks that operations face in these competitive times.

A veritable cornucopia of supply demand dynamics, concomitant technologies and deep interdependencies among and within economies has led to business growth disruptions and closures at a magnitude hitherto not imagined or seen.

The old guard such as ‘Financial Management’ and Capacity Planning’ of insurance business management is now merging focuses with the young upstarts such as ‘Data Analytics’, Big Data’, Social Media’ in the race to meet, drive and channel consumer demand, a capricious beast of the best of times across price points and utility functions at a scope and scale yet unseen.

This essay looks at various life insurance product trends and how these can be sustained for competing in a future insurance market. There are 2 key factors during insurance product development, mortality risk and longevity risk. Traditional life insurance products like the term and whole life were intended to address mortality risk, more specifically the risks one dies prematurely. The primary purpose was to safety net for the families when one of the primary bread winners passed away. In recent years the focus has shifted to address longevity risks as the baby boomers reach retirement age in a time when the defined benefit pension plan has become a relic of the past.

Standing at the cross roads of 21st century the 4 most important developments that are said to have the most decisive impact over the next 10 years and the most opportunities for innovation growth and competitive differentiation 

1. Changing demographic pattern for innovative product. 

2. Technological innovation to suit changes in customer preferences.

3. Environmental changes in reshaping the market place.

4. Economic and political regulations and the overall impact in the growth of insurance.