Loan linked products can boost insurance penetration: R.M. Vishakha

IndiaFirst Life Insurance MD and CEO R.M. Vishakha, whose dream it is to make insurance accessible to every citizen of this country, thinks making insurance mandatory via loan linked products is a sureshot way to boosting insurance penetration in India.

Speaking at the Fortune India Most Powerful Women summit in Mumbai, she said that making insurance mandatory is the easiest solution. “There are some products that are mis-selling proof like a simple loan linked insurance, what people understand as mortgage insurance. It’s a no brainer,” she said.

Vishakha then went on to explain that if a product is priced right and if every loan a person takes comes with an insurance scheme built in, it would be like a service to the consumer.

When asked about the steps needed to boost women’s participation in India’s workforce, she said the country currently has a lack of demand for women employees. Vishakha said that two questions needed to be answered; ‘do we have enough women willing to join the workforce?’ and ‘do we have enough employers willing to hire women?’

She went on to say that the problem lies at both ends, but more towards the latter. “We need to create more demand for women workers,” she said, adding that creating demand will automatically result in a rise in supply.