According to BNP Paribas, productivity gains, Internet technology and reduction in labor costs will further decrease the cost-to-income ratio.
“We believe that life insurance is likely to rise, as Indian consumers begin to see insurance as an investment tool. As information spreads and number of customers increase, insurance is to become more accessible,” the broker’s statement says.
They are confident at BNP Paribas that the market problem is in the demand, but in the inertia of insurers who are in no hurry to adapt to changing consumer preferences.
Photos are from open sources.