Mumbai: India is witnessing early signs of a sustainable economic revival with high growth in non-oil and non-gold imports, reflecting a pick-up in domestic demand, chairman Deepak Parekh told shareholders at Insurance Co’s annual general meeting (AGM).
“We remain optimistic about the resilience of India’s economy despite the high volatility in the global environment,” Parekh told shareholders. “Domestic economic activity is fueled by private consumption and rising discretionary spending. Furthermore, the forecast for a normal southwest monsoon this year is expected to support rural consumption.”
However, the company remains vigilant about the implications of the current geopolitical tensions, elevated commodity prices, slowing external demand, supply disruptions, capital outflows, higher inflation in emerging economies and the withdrawal of monetary accommodation in developed economies.
Factors such as low market penetration, favourable demographics and rising awareness among consumers regarding the need for insurance are considerable tailwinds for the industry.
“Our endeavour is to continue expanding sources of new business and introduce new products whilst ensuring appropriate risk management and business quality,” Parekh said. “India’s demographic dividend not only offers a huge opportunity, but also poses a considerable challenge to reach and serve customers across the length and breadth of our country in a cost-efficient manner. Given this, I have no doubt that technology will be a key enabler for life insurance companies to achieve their aspirations.”
India’s insurance penetration and density still remain much lower than the global average, which means with an increase in per capita GDP, there is an immense potential for continued sectoral growth, he said.
We remain optimistic about the resilience of India’s economy despite the high volatility in the global environment
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