Underscoring job potentials in insurance sector in the coming years, Director, National Insurance Academy, Pune, Prof Sushobhan Sarkar said that the need for employees in insurance sector will grow at a higher rate by 2030.
Prof Sarkar said that insurance sectors in India will require 21 lakh employees by 2020 while the demand would further increase to 30 lakh employees by the year 2030, in addition to existing 30 lakh direct and indirect employees in the sector.
Speaking at a national-level seminar on ‘Insurance Education in India: Challenges and Opportunities’ organised on Monday by the Department of Studies in Commerce, University of Mysore (UoM) and Mysore Insurance Institute (MII), Prof Sarkar observed that insurance sector would be a major contributor to the Indian GDP with 6.4 percent from 3.3 percent now. In an optimistic scenario, he added, the contribution would go up to 8.4 percent considering the 12 percent compounded annual growth rate (CAGR) over the next 15 years.
“According to recently released reports by the Confederation of Indian Industry (CII) and the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the sector is expected to quadruple to about 560 billion dollars in 2030. The estimated increase by 2020 is 176 billion dollars from around 46 billion dollars now. It could reach to 1.3 trillion dollars by 2030, with a four-time increase in the premiums,” Prof Sarkar pointed.
He cited lack of employment-friendly education at the institutes and universities as the major challenge with most of the passing outs “possessing no entry-level skills.” “Challenges lie in the course of education which doesn’t meet the demands of the industries. There is a disparity of perception among education institutes and the employers as the former feels 83 percent of the pass outs possess entry-level skills while the latter says only 51 percent of pass outs have entry-level skills, which is a cause of concern,” Prof Sarkar said.
UoM Vice Chancellor Prof K S Rangappa lauded the efforts of Microinsurance Awareness and Enrolment Mission (MAEM) – a UoM initiative to mainstream rural Mysuru – for reaching out 100 villages in four districts and enrolling 3,000 villagers under various microfinance schemes.