Insurance industry lacks human capital in administration: Irdai member

The Indian insurance industry, which suffers from a dearth of human capital in administration and marketing functions, should invest in human capital, BC Patnaik, Member (Life) at the Insurance Regulatory and Development Authority of India (IRDAI), said.

"There has been a clear lack of investment in human personnel in the administrative and marketing wing of insurance companies," Patnaik said at an insurance summit on Tuesday.

He further said that the lack of skilled professionals has affected the Assets under Management (AUM) of these companies. Most of the life insurance companies have asset values which are less than Rs 10,000 crore.

As of the financial year ending in March 2022, the overall AUM of the insurance industry stood at Rs 55 lakh crore. Out of which, the AUM of the life insurance industry stood at Rs 50 lakh crore and the non-life industry was at Rs 5 lakh crore.

Further emphasising the importance of investment in human capital and resources, Neelesh Garg, managing director and chief executive officer of Tata AIG General Insurance, said, "This industry needs fresh thinking and human capital to achieve Insurance for All by 2047. Human capital is the most important raw material, and it is the training and retention of these that is key for the growth of the sector."