Views of Suyash Patodia on avenues in insurance sector for Chartered Accountant Currently he is working as Executive President of Choice Insurance Broking
Chartered Accountant in Insurance Sector
I will start the article with golden words of my father CA Sunil Patodia, that a Chartered Accountant during his CA course acquires requisite knowledge and/or management skills to be successful in any sector whether it being his or her job or as an entrepreneur.
Insurance Sector at a glance
The insurance sector is regulated and controlled by the Insurance Regulatory and Development Authority of India (IRDAI).
In the past few years, the insurance sector in India has experienced significant development. With the advent of technology, internet, several new products and customized plans, the insurance sector has contributed towards the country’s economy as well as provided financial protection to the people by offering insurance coverage amount. The overall insurance sector in India however remains low.
Like any other sector, a Chartered Accountant (CA) can play a key role in Insurance Sector. Insurance Sector is increasingly gaining attraction and we are seeing a large increase in number of people involved in distribution of insurance products either as an insurance company or as insurance brokers or as agents of the insurance company or insurance brokers. We are also witnessing investment of major Fin-Techs in the insurance sector. People are coming up with new and innovative methods to distribute insurance products.
Roles/Opportunities for CA in Insurance Sector
- Agent of Company: A CA can become an agent of a Life and Non-Life Insurance Company to distribute various insurance products offered by that particular Insurance Company
- Agent of Broker: A CA can become an agent of an Insurance Broker. This provides him multiple insurance products to choose from to offer to his/her clients
- Start-Up: Innovative Start-Up is another option for a CA to participate in Insurance Sector. Many start-ups have entered the insurance sector and are finding innovative ways to reach different set of customers with multiple insurance products.
Benefits of Chartered Accountancy (CA) Course:
Does completing CA course help gain advantage over others in the above mentioned roles? Yes. A CA has following benefits over others:
- Tax Planner: In our society, a CA is normally considered a preferred option for tax planning. This way a CA is in better position to guide as to which insurance products can help them in tax saving. This helps to build initial client base.
- Finance Management: Any business, whether as an agent or having own company, requires generation and effective use of financial resources. A CA is in better position to manage the finances over general public
- Compliance: Insurance is a regulated sector. There are a number of regulations which needs to be complied with and timely submission of returns is important. CAs are well versed with compliance requirements and thus gain edge over general public
- Professional: Having a degree before name certainly helps build trust among clients. Advice from a Chartered Accountant is considered more trustworthy by the customers.
Potential of Insurance Sector:
The future looks promising for the insurance industry with several changes in regulatory framework which will lead to further ease in the way the industry conducts its business and engages with its customers. Demographic factors such as growing middle class, young insurable population and growing awareness of the need for protection and retirement planning will support the growth of insurance in India. New insurance agencies or insurance aggregators will experience dynamic growth and extension both in the Life as well as General insurance Sectors in India.
The Indian Government has likewise thought of various endeavors to provide insurance to below the poverty line people through different campaigns like Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Rashtriya Swasthya Bima Yojana (RSBY). The introduction of such plans is promising for the citizens of India as it targets helping the lower and lower-middle-income group of the country.
Lastly I would like to add Insurance Sector is not about selling insurance products but about providing financial service to our clients. Since we are moving towards the end of financial year, many people will be looking for advisory for tax saving. Among other sources of tax saving, insurance is also one of the sources. JFM (short of Jan-Feb-Mar) Festival is the most hectic period in Insurance Sector where a large participation and interest is seen from the customers for insurance products largely as a tax saving tool. I would advise all CAs to get in touch with their clients and also with Insurance Company and Insurance Brokers and analyse how they can provide additional services via insurance which is a part of financial planning for their clients.
Views of Suyash Patodia on avenues in insurance sector for Chartered Accountant Currently he is working as Executive President of Choice Insurance Broking
Chartered Accountant in Insurance Sector
I will start the article with golden words of my father CA Sunil Patodia, that a Chartered Accountant during his CA course acquires requisite knowledge and/or management skills to be successful in any sector whether it being his or her job or as an entrepreneur.
Insurance Sector at a glance
The insurance sector is regulated and controlled by the Insurance Regulatory and Development Authority of India (IRDAI).
In the past few years, the insurance sector in India has experienced significant development. With the advent of technology, internet, several new products and customized plans, the insurance sector has contributed towards the country’s economy as well as provided financial protection to the people by offering insurance coverage amount. The overall insurance sector in India however remains low.
Like any other sector, a Chartered Accountant (CA) can play a key role in Insurance Sector. Insurance Sector is increasingly gaining attraction and we are seeing a large increase in number of people involved in distribution of insurance products either as an insurance company or as insurance brokers or as agents of the insurance company or insurance brokers. We are also witnessing investment of major Fin-Techs in the insurance sector. People are coming up with new and innovative methods to distribute insurance products.
Roles/Opportunities for CA in Insurance Sector
- Agent of Company: A CA can become an agent of a Life and Non-Life Insurance Company to distribute various insurance products offered by that particular Insurance Company
- Agent of Broker: A CA can become an agent of an Insurance Broker. This provides him multiple insurance products to choose from to offer to his/her clients
- Start-Up: Innovative Start-Up is another option for a CA to participate in Insurance Sector. Many start-ups have entered the insurance sector and are finding innovative ways to reach different set of customers with multiple insurance products.
Benefits of Chartered Accountancy (CA) Course:
Does completing CA course help gain advantage over others in the above mentioned roles? Yes. A CA has following benefits over others:
- Tax Planner: In our society, a CA is normally considered a preferred option for tax planning. This way a CA is in better position to guide as to which insurance products can help them in tax saving. This helps to build initial client base.
- Finance Management: Any business, whether as an agent or having own company, requires generation and effective use of financial resources. A CA is in better position to manage the finances over general public
- Compliance: Insurance is a regulated sector. There are a number of regulations which needs to be complied with and timely submission of returns is important. CAs are well versed with compliance requirements and thus gain edge over general public
- Professional: Having a degree before name certainly helps build trust among clients. Advice from a Chartered Accountant is considered more trustworthy by the customers.
Potential of Insurance Sector:
The future looks promising for the insurance industry with several changes in regulatory framework which will lead to further ease in the way the industry conducts its business and engages with its customers. Demographic factors such as growing middle class, young insurable population and growing awareness of the need for protection and retirement planning will support the growth of insurance in India. New insurance agencies or insurance aggregators will experience dynamic growth and extension both in the Life as well as General insurance Sectors in India.
The Indian Government has likewise thought of various endeavors to provide insurance to below the poverty line people through different campaigns like Pradhan Mantri Suraksha Bima Yojana (PMSBY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Rashtriya Swasthya Bima Yojana (RSBY). The introduction of such plans is promising for the citizens of India as it targets helping the lower and lower-middle-income group of the country.
Lastly I would like to add Insurance Sector is not about selling insurance products but about providing financial service to our clients. Since we are moving towards the end of financial year, many people will be looking for advisory for tax saving. Among other sources of tax saving, insurance is also one of the sources. JFM (short of Jan-Feb-Mar) Festival is the most hectic period in Insurance Sector where a large participation and interest is seen from the customers for insurance products largely as a tax saving tool. I would advise all CAs to get in touch with their clients and also with Insurance Company and Insurance Brokers and analyse how they can provide additional services via insurance which is a part of financial planning for their clients.