India could repeat the telecom success in insurance: Kidwai

Bangalore (PTI): India had the potential of repeating the success witnessed in the telecom sector in the insurance sector as well, Naina Lal Kidwai, Group General Manager and Country Head, India, HSBC, said on Monday. India had among the least insurance penetration in the world, especially in the rural sector, which indicated the vast potential that the country held in this field,she said on the sidelines of the launch of the Canara HSBC Oriental Bank of Commerce LifeInsurance Company.

The steps taken by the telecom industry helped in transforming the story in India, she said adding "we must see the success witnessed in the Telecom industry repeated in theinsurance sector", she said. Welcoming the entry of more players in the insurance sector, she said this would only enhance competition thereby improving quality of service."Both the customers and players would benefit from competition", she said. The entry of more players had helped to grow the market. There has been no shrinking scale", she said. "Everyone is growing", she observed.

Health insurance products was one of the potential areas that could be developed. Nearly 60 percent of household savings in India go to meet health related issues. The new company currently would offer standard products, but the market for health products would be examined, she added. She said unlike other countries, India did not have a social welfare scheme in place to care of the aged. Hence the importance of healthinsurance could not be undermined.

news source : http://www.hindu.com/