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Terming the low insurance density in the country as a "matter of concern", ICICI Bank MD and CEO Chanda Kochhar today said the industry requires a sustainable and profitable model for growth.
"Insurance density level in India is very low, compared to developing nations like Brazil. Similarly, penetration across different income segments is also low," Kochhar said at an event organised by the National Insurance Academy here.
She also said cost efficiency and better use of technology, coupled with customer focus are vital for the industry to progress in the future.
Kocchar also pointed out the need to check mis-selling of insurance products.
"There is a change in the demographics. Hence, innovative products to meet customer needs are required. The industry needs transparent products, not just simple products. There is also a dire need to control mis-selling, especially since insurance is primarily sold through third-party channels," she said.
Meanwhile, the Chairman and Managing Director of General Insurance Corporation of India (GIC Re), A K Roy also stressed the need of simple products and processes.
Similarly, joint secretary of Department of Financial Services, Arvind Kumar said penetration of general insurance industry should be raised which is at very low level.
"While our savings rate is one of the best in the world, our general insurance penetration is not even one per cent. This is an area where changes need to be brought about," Kumar said.
