Topic: Impact of Covid -19 on Insurance
Industry.
Kajal Sahu.
SYBAF
R.K.Talreja college of Arts , Science and Commerce
(CMC).
Ulhasnagar – 03
[email protected]
9529822445
Abstract :
Covid – 19 pandemic impacted various industry and
services all over the world . After the year 2000, India’s
insurance industry started to increase but after the
Covid -19 there is a huge impact on insurance industry .
In pandemic , insurance industry get attraction of the
people . There market is also get attention of customer
. Life insurance is not simply a business proposition . It
is not just a question of mobilization of resources for
development ; it is a question of citizen’s sense of
security. It provide a link between the present and
future . Today India is one of the fastest growing
economies of the world . The profitability of the life
insurance companies has also been changed due to
change in operating activity like selling new policies
,appointment of active agents , sector companies has
been higher than government sector . The life
insurance sector in India has seen array of changes in
past one decade. Now it has to be more competitive in
order to meet the needs and the demands of its
customers . The growth of insurance business of
private sector companies has been higher than
Government sector . Insurance industry is a growth
oriented industry .
Keywords: Life insurance, profitability , growth ,
economy .
Introduction:
Life Insurance Industry in India is one of the hard-core
parts of the service sector. It plays a vital role in the
economic development of our nation. It not only
provides safety against life risk for individuals but also
acts as savings, financial intermediary, and promoter of
investment activities and stabilizer of financial markets.
With the first case of Covid -19 in December 2019 in
Wuhan, China, the virus quickly spread all over the
world in just a few months. It has infected 41.3 million
people worldwide, including 7.71 million in India
alone, and the number is still fluctuating with
millions of people being vaccinated and recovered
(COVID-19). COVID-19 was declared as a global
pandemic by the World Health Organization, which is
a viral disease that has not only affected humans, but
also has a negative effect on the country’s economy .
India is one of 15 countries whose GDP was negatively
affected. According to a report released by the
Ministry of Finance, India’s GDP rate fell to its lowest
level ever after this lock down. Its GDP drops from
4.5% in the first quarter of FY19 to 23.9% in the first
quarter of FY20 (ET, 2020).
According to the survey, India’s life insurance firms
have grown there business by 11.36% by the end of
March 2020. In FY20, the insurance industry grew by
13% for non-life insurance while 18% for life
insurance. There are two kinds of insurance policies:
one is life insurance, which covers human lives and
pays only until death or the maturity of the policy.
On the other hand, general insurance, also known as
non-life insurance covers fire, health, motor,
marine, engineering, and other miscellaneous risks,
and reimburses policyholders for damages incurred
during the policy duration. This research aims to assess
the impact of COVID-19 on all major stakeholders,
including hospitals, insurers, and corporations, as
well as the impact of COVID-19 on constantly
evolving claim trends, various protective models,
and digitalization modes. It proposes several
strategies for reducing confusion and preparing for
future digital shifts.
Objectives of study :
To insurance understand Sector the during changes
in Covid the
To Covid study the after effects of the business of
Insurance Sector.
To Know about the market condition after the
Covid .
Research Methodology :
These research paper is done by analysing the
performances of life insurances companies in India.
Data Collection :
This study is an integration of primary and secondary
data to support each other. Primary data was based on
the sample and relevant questionnaire drafted to find
out the people’s opinion of insurance company. The
questionnaire was sent to 30 respondents through
WhatsApp.
Review of Literature :
The impact of Covid-19 on the insurance industry.
The impact of the Covid-19 pandemic on the
business interruption insurance demand
An overview of the impact of COVID-19 on the
Indian health insurance sector and post-COVID-19
Management.
Data Analysis :
The data collected through the questionnaire are
presented in table and pie chart. With the help of the
questionnaire an attempt has been made to find out the
degree of awareness, preference of the consumer.
The study shows that the people is aware
about the term insurance policy. These
shows that people are interested in topic
insurance.
The study shows that the most of the people is
taken the life Insurance and on the other hand
some of them taken the medical insurance.
The study shows that the most of the
people is taken the one insurance policy and
some people taken the 2 insurance policy
and around 6.5% people taken more than 2
policy.
The study shows that the people
prefer the 5 year insurance policy.
The study shows that the most of
the people prefer to pay the
premium at yearly basis.
The study shows that the most of
the people taken the insurance
policy at the time of the Covid -19 .
The study shows that the people are
satisfied with the maturity returns.
The study shows that the people is
satisfied with the services provided
by the insurance company .
The study shows that the people is
satisfied with the services provided
by the insurance company.
The study shows that the people is
satisfied with the services of
insurance company.
Conclusion :
The study was conducted with the aim of describing
the insurance industry performance before Covid and
after Covid-19 pandemic in India. The changing
trends and challenges faced by life insurance providers
are also been analysed under the study. To attain the
stated objectives, researcher has used exploratory
research design. Insurance industry plays a very crucial
role in economy as its saves life, encourage investment,
household’s savings and also provides mass
employment to youth of the nation.
The insurance companies face liquidity problem in the
short run and solvency problem in the long run if the
pandemic stays for a long time. No doubt there are
many hurdles for insurance companies in present tough
times. But with the effective policy measures, the
challenges can be turned into opportunity by looking for
alternative options like giving more digital services to
the customers in terms of giving online policy
information, policy buying, premium payment and
also fast claim settlement. All customer services are
available at door and insurance employees are
allowed to work from home which helps to reduce
companies’ operation cost and other expenses. In
current uncertain situation where life related risks are
very high. People tend to invest in long term insurance
in order to secure their family and loved ones.
Webilography:
https://www.researchgate.net/publication/358667383_Impact_
of_Covid-19_on_Insurance_A_Systematic_Review
https://www2.deloitte.com/ie/en/pages/covid-
19/articles/impact-COVID-19-insurance-industry.html
https://www2.deloitte.com/ie/en/pages/covid-
19/articles/impact-COVID-19-insurance-industry.html
https://www.researchgate.net/publication/312068913_RESEA
RCH_PAPER_INSURANCE_INDUSTRY_DIGITAL_TRA
NSFORMATION_IMPACT_ON_HISTORICAL_PLAYERS
_by_Matthias_de_Ferrieres
