SME Artha 2022 | Video: MSMEs aren’t easy to access for insurance firms, says Sasikumar Adidamu of Bajaj Allianz General Insurance | The Financial Express

SME Artha 2022 | Video: MSMEs aren’t easy to access for insurance firms, says Sasikumar Adidamu of Bajaj Allianz General Insurance

Ease of doing business for MSMEs: The key reason for the poor adoption of insurance among businesses has been the lack of awareness, according to experts.

MSMEs not easy to access for insurance firms: Sasikumar Adidamu of Bajaj Allianz General Insurance

Ease of doing business for MSMEs: Insurance penetration in the MSME sector is dismal as a number of enterprises see insurance adoption more as an expense. According to data and analytics company GlobalData, the general insurance industry in India grew by 5 per cent in 2021, its slowest growth during the last decade. The key reason for the poor adoption of insurance among businesses has been the lack of awareness, according to experts. 

Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises 

However, for insurance companies, there isn’t much incentive in reaching out to MSMEs and selling insurance to them. “The premium collected from MSMEs is very very minimal,” said Sasikumar Adidamu, Chief Distribution Officer, Institutional Sales at Bajaj Allianz General Insurance. Talking to FE Aspire at SME Artha 2022 event, Sasikumar explained why insurance uptake among MSMEs is low, the challenges involved for insurance companies, and also the popular insurance types among MSMEs, etc.

Also read: SME Artha 2022 | Video: MSMEs are unhappy with the way banks have treated them, says FISME

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 08-11-2022 at 11:00 IST