General insurance industry to spend Rs 300 cr to deepen penetration

Mumbai, May 28 (PTI) General Insurance Council, the umbrella body of the industry, on Tuesday, announced that it will be spending at least Rs 300 crore over the next three years on a campaign aimed at deepening the insurance presence in the country.

The industry, which has over three dozen players, launched a dedicated campaign with the theme ‘Accha Kiya Insurance Liya’ to urge people to get covers against any risk.

It can be noted that earlier, the mutual fund industry is credited for successfully launching an awareness campaign which helped deepen penetration and also attract investments.

Shanai Ghosh, the managing director and chief executive of Zuno General Insurance, said the GIC has decided to have a sustained campaign at least for the next three years.

"We will invest over Rs 100 crore in the first year and the amount will be the same if not higher in the remaining two years," she said.

GIC's chairman and the head of Bajaj Allianz General Insurance Tapan Singhel said there's a clear disconnect between awareness and action. Insurance is still viewed more as a reluctant expense than a financial shield.

The campaign is an attempt to bring insurance closer to the lives and language of ordinary Indians, he said.

The GIC undertook a survey on awareness around insurance products, which revealed that motor insurance is the most purchased at 34 per cent followed by life at 27 per cent and health at 15 per cent.

Other insurance categories such as home, travel, and crop insurance remain underutilized and under-promoted, it said.

Singhel also said that the GIC will approach the life insurance council as well given the potential benefits of a campaign like this. PTI AA MR MR