What is the importance of Insurance & Retail sector in todays scenario?
Importance of the insurance sector is high for any developing country, particularly India. It allows for a range of financial instruments for different purposes – from meeting diverse needs from health costs & medical emergency (health insurance) or savings or crop insurance to personal asset building or long term fund accumulation for investment etc. It provides for continuous in-flow of capital and long-term investible funds. Insurance sector’s contribution to the country’s GDP can be significant. For example, in the U.S it is between 7 – 8 percent. Such long term funds can support the government to draw on investment to execute important public projects that have long gestation period, i.e, roads, ports etc. It also allows private companies to access the financial markets to raise long term funds. A mature insurance sector is backed by reputable re-insurers. And lots of jobs are created. The organized retail industry in India is one of the newest sun-rise industry. Current estimates
