Insurances in India are very tricky as most of the investment goes into advertising a policy, which is a moving topic. The insurance sector took a major hit because there have been reports that, along with banking, there has been serious damage been done to the insurance sector that is largely at the structural level and will take a lot of time to fix.
The major names in banking are pulling out of the Indian markets and especially the policies that they have been taken by these banks that are pulling out. People are worried that their insurances can go down, and they can hurt the premiums that the people have been paying for years. The major private insurers include some, ICICI Lombard General Insurance, Tata AIG and Cholamandalam MS General Insurance, have pulled out of the Pradhan Mantri Fasal Bima Yojana (PMFBY or prime minster's crop insurance scheme) which was supposed to help the farmers of the nation. These insurers pulling out is a sign that the nation will no longer be stable, no matter where you hide, past is always there to catch up, and the same is with the failing insurances and the failing banks.
Let's see how the nation fares against the diminishing hopes of the insurance sector. The insurances of the nation will be hugely affected if the banks merge and decide to experience some of the worst losses that they incur. Insurance in India sure needs a push to grow again.
Tags : Insurances in India, ICICI Lombard General Insurance, diminishing hopes, banks merge,