India’s Insurance Sector – Essay Evaluation
Bank Whizz Descriptive Mock Evaluation Series
This post is part of Bank Whizz’s Descriptive Mock Evaluation Series for regulatory exams. Here we evaluate a real aspirant’s essay on:
“India’s Insurance Sector: Growth, Challenges, and Future Prospects”
📘 Mock & Meta Details
| Test Name | Descriptive English – Essay Practice |
| Question Type | Essay |
| Topic | India’s Insurance Sector: Growth, Challenges, and Future Prospects |
| Word Limit | 250 words |
| Words Attempted | 288 words |
🧾 Question & Instructions
Q. Write an essay on “India’s Insurance Sector: Growth, Challenges, and Future Prospects” in 250 words.
✍️ Student’s Submitted Answer
Insurance in india is of many type like term insurance,health insurance or insurance on any vehicle or gadgits.Indian people spend very less on insurance.Even if they will spend on term and life insurance that will be done with any government insuarance organisation like Life Insurance Corporation LIC.Due to which government and Insurance Regulatory Authority of India (IRAI) has come up with the aim of Insurance for all by 2047.To achieve this goal technology plays a vital role in today’s time.It made insurance services at our doorstep and fintech companies made it possible too.Now companies have data of customer with which they can analyze the risk and spending of individual and make the customised and affordable package for middle calss and lower middle class people.With all these advancement and growth in this sector there are some challenges in this sector too.Challenges like data privacy and data security.Increasing scams and frauds by companies.Lack of proper clarity and transparency in the benefits they are going to give to customer.As we encounter many insurance company denied money to policy holder during COVID by playing with words and technical terms.Thus it is very important that regulatory body IRAI take legal action against these companies and provide money to the customer on due time.For this regulatory bodies need to evolve and update their regulation with changing technology.it is also important that people and aware of the update regarding new regulation and compliance to avoid any scams and frauds going in market.At the end it is important that government and regulatory bodies along with individual needs to make insurance sector grow in our country by making wise decision.
📊 1. Scorecard (Out of 30 Marks)
| Parameter | Max Marks | Marks Awarded | Justification |
|---|---|---|---|
| Content Depth & Relevance | 10 | 4.5 | Lacks schemes, data, reforms, regulatory insights. |
| Structure & Organisation | 5 | 2.5 | Ideas scattered, weak paragraph discipline. |
| Critical Thinking | 5 | 2 | No analytical reasoning or policy explanation. |
| Language & Expression | 5 | 2.5 | Grammar errors and informal tone. |
| Word Limit & Format | 5 | 3.5 | Exceeded word limit; tone needs more formality. |
Total: 15 / 30
💡 2. Strengths
- Attempts to cover growth, technology, and challenges.
- Mentions “Insurance for All by 2047”.
- Acknowledges major issues like frauds and transparency.
- Essay ends with collaborative outlook.
⚠️ 3. Areas of Improvement
1) No data or schemes referenced
Weak: Indian people spend very less on insurance.
Better: India’s insurance penetration is just 4.2% (IRDAI, 2023) vs global 7.1%.
2) Informal tone
Weak: companies denied money during COVID…
Better: COVID-era disputes exposed gaps in claims settlement.
3) Missing key reforms
No mention of Bima Trinity, PM-JAY, Ayushman Bharat, sandbox, micro-insurance.
4) Repetitive structure
Better to divide into Growth → Challenges → Future Prospects.
5) Several grammar issues
✏️ 4. Line-by-Line Suggestions
Original: Insurance in india is of many type…
Improved: India’s insurance sector includes life, health, motor, and digital products, yet penetration remains low.
Original: Fintech companies made it possible.
Improved: Insurtech firms enable digital KYC and instant policy issuance.
Original: Challenges like data security and scams.
Improved: Mis-selling, cyber fraud, data breaches, and opaque terms remain major hurdles.
🏆 5. Model Essay (250 Words)
India’s Insurance Sector: Growth, Challenges, and Future Prospects
India’s insurance sector has witnessed rapid evolution in recent years, driven by economic growth, regulatory reforms, and rising awareness of financial protection. Yet insurance penetration in India remains about 4.2 percent, significantly below the global average, indicating substantial untapped potential. Government programmes such as Ayushman Bharat, PM-Jeevan Jyoti Bima Yojana, and PM-Suraksha Bima Yojana have expanded coverage, while the national vision of “Insurance for All by 2047” aims to build a more inclusive ecosystem.
Technological innovation is reshaping the sector. Digital KYC, AI-enabled underwriting, telematics-based motor insurance, paperless onboarding, and insurtech platforms have simplified access and lowered operational costs. IRDAI’s sandbox framework encourages experimentation with micro-insurance, wellness-linked products, and usage-based health and motor policies, enhancing both efficiency and customer experience.
However, multiple challenges persist. Consumers often struggle with complex policy wording, mis-selling, and delays in claim settlement, which reduce trust in insurers. Growing digitalisation has heightened concerns related to cyber risks, data privacy, and online fraud. Large rural and semi-urban populations continue to face limited awareness, affordability constraints, and inadequate distribution networks. The pandemic further exposed weaknesses in grievance redressal and highlighted the need for stronger preparedness.
Looking ahead, reforms under the Bima Trinity—Bima Sugam, Bima Vistaar, and Bima Vaahak—promise to unify distribution, improve transparency, and deepen rural penetration. Strengthening digital security, enhancing financial literacy, improving capital adequacy, and enforcing robust disclosure norms will be critical. With sustained regulatory support and technology-driven solutions, India’s insurance sector is positioned to become more resilient, inclusive, and globally competitive in the coming decade.
📚 6. Key Learning for Aspirants
- Use data + schemes (IRDAI, PM-JAY, Ayushman Bharat).
- Avoid informal lines; maintain exam tone.
- Follow logical structure: Growth → Challenges → Future Prospects.
- Include regulatory reforms such as Bima Trinity, IRDAI sandbox, IIBI.
- Use precise vocabulary: penetration, risk pooling, regulatory oversight.
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