India ranks very low in General insurance business - How to improve it?

Countries where there are larger penetration of Insurance are where there social life of citizen is more predictable. Countries got developed simplifying complex nature of social, economic and political processes. So life and it's processes are more predictable in those countries for the citizen.

For India the case is just contridictory to that. We haven't yet simplified our environment rather our processes are very complicated and unpredictable. Moreover our infrastructure is not modern or of 'state of the art' making it riskier to get things done. Also the value of the currency is very low which creates more unemployment rather than generate more employment. We don't even have unemployment insurance here. So because of the above reasons our insurance premiums are very high due to risk factors very high and the value of the currency very low. So penentration of insurance to lowly endowed citizen become difficult.

Unless situation changes it is very difficult to penetrate. Look at auto insurance. It is very risky to drive on Indian roads and the insurance premium is very high.

I feel one of the biggest constraints facing the general insurance business is the lack of reach beyond the cities and also the commission rates for general insurance is not that good. Definitely, these two factors should me immediately looked into..........

General insurance has got greatest potential in market. General Insurance which is important for everybody. To improve sales of Gen. Insurance company should create awareness regarding Gen. Insur. products available for people. There are many Gen Ins. products like health insu., crop insu., Vehicle Insu., Accidental, travel ins etc. 

Among the above mentioned people are unaware regarding most of the products. As crope insurance is availble for farmers who are in rural markets. but they are not aware regarding this so company should go through this potential market and aware people regarding these products.

India lacks trained professionals in the insurance sector which leads to grater confusion among the buyers. The one who is dealing with the day to day activities in insurance sector are not much aware of the scenario around them so they in turn are unable to help the consumers which leads greater confusion and lack of knowledge.

GIC is very low business in india because their peoples are more interact with the Life Insurance Products because Life Insurance products gives the more benefits and also to give apportunities for the investments also.

Currently all the PVt general insurance companies eying the PSU general Insureres existing business only. They are not concentrating new areas and new business. Every one want to build their books. Even in motor insurance all the pvt insurer focusing not the new business , by employing direct selling channles they are focuising only renewal by giving huge discounts to the custmer. Not from their pocket by hiding voluntry excess. all misselling .Few companies started selling third party life insurance prouducts to their datas.In that case bow you feel general insurance business will grow. mainly all the insurers are concentrating pvt car, travel. No one intetrested to to two wheelers. No one contrated householders policy, if you take any insurance their major premium inflo from Motor only.

They have to go to as new area like house holders insurance, Personal accident policy to house wifes,  some more  insurance copanies whould break their5 heads.

Both the govt and private sector general insurance companies discourage new agents being recruited. Agency channel is never keenly promoted in metros/towns.

Most companies avoid risky proposals and remain out of reach for most of the population defying the law of large numbers of insurance business.

Our state owned GIC and its 4 subsidiaries are competent enough to deal with the situation but only if the management changes its attitudes towards its field staff.

Like Niranjan Meena says, and I agree that there is very poor commission structure and therefore the motivational levels are very poor in GIC companies.  The penetration is also therefore poor.