Adjusting to change in India and finding opportunities

In the midst of change, opportunity abounds for life insurance sales and retirement planning in India, predict top financial advisors there.

“India is going through a demographic shift,” said MDRT member Manoj Mani Agrawal, FCA. “In the next two to five years, almost two-thirds of our country, which has a population of 1.3 billion people, will be between the ages of 18 and 65.”

An expanding economy and financial awareness

India’s population, which makes up almost 18 percent of the world’s population, is a force to be reckoned with. Millions of people in India are opening up bank accounts for the first time and their awareness of life insurance, financial planning and banking is expanding.

“Once people are aware, I think it would be a huge opportunity for all of us, even in the private insurance sector, to sell more insurance,” said Agrawal, of Kolkata, India, who has two Court of the Table qualifications.

Challenges and opportunities

Advisors in India are facing several challenges, which can bring opportunities when approached with the right mindset.

1.     A population without a history of retirement planning

“It’s very common in India for people to plan for their children but not for their retirement,” said five-year MDRT member Plabita Sanjiv Priyadarshi, of Mumbai, India, who has five Court of the Table qualifications.

Most people in India do not have retirement plans from either the government or their employer. Only government workers have pension plans. The rest of the population must make their own plans for retirement, even if that means working until they die or depending on family. Yet generations of families living together is not as common as it once was; today younger people are more likely to move away from aging relatives.

2.     Changes in regulations and ability to purchase insurance

As in many countries, new regulations and ways to distribute life insurance are occurring in India, including the ability to buy life insurance online or on the phone without the assistance of a trained advisor.

Furthermore, the Indian government continues to come up with new plans for insurance, such as group insurance, to help the millions of uninsured people in India, said Venkateswara Vakalapudi, a 15-year MDRT member with one Court of the Table and seven Top of the Table qualifications. “I see that in the next five to 10 years, at least 70 to 80 percent of India will be insured. I’m very happy to be part of that,” said Vakalapudi, of Hyderabad, India.

While societal shifts and governmental changes can be arduous and complex, those advisors in India who can understand the environment and open to new ways to help people are finding more possibilities for growth than ever.

Written by Antoinette Tuscano, MDRT Content Specialist

• See more of the conversation in the video “Overcoming struggles.”
  
• Read more about India’s rapid growth in the financial planning sector in the Round the Table article “India experiences rapid growth.”