This week, we had the pleasure of having a digital video conversation with Sankar Mohan, President of Interlink Insurance and Reinsurance Brokers.

This conversation is part of our latest series - #PeopleOfInsurance, where we share insights, opinions, and stories from people in the insurance industry—whether they have years of experience like today’s interviewee or have just joined the space.

In 40 years of being in the insurance industry, Sankar Mohan has seen and done it all. He started his career with Oriental Insurance in 1981 and later moved to the private sector, working as both an insurer and a broker. He also served as MD & CEO of Acorn India Insurance Brokers.

At a time of rapid changes in the insurance industry, we wanted to understand his expert perspective on the future of insurance in India. Sankar shared his wisdom and enthusiasm for the industry, giving us key insights.

Our question to Sankar Mohan:

What do you think the future of insurance will be like?

Sankar Mohan:

"I believe the future for the insurance industry is always bright. Basically, insurance is the handmaid of commerce. Insurance started as a mutual and then evolved as per the needs of the changing times. It is more about the function of numbers and the geographical spread of risks."

"Insurance is the handmaid of commerce." — Sankar Mohan

As the world evolves and newer risks emerge, insurance will continue to expand its offerings to support businesses. At its core, the primary purpose of insurance is to protect business balance sheets.

The Three Eras of General Insurance in India

1️⃣ Pre-Nationalization Days (Before 1972)

• 107 private insurance companies operated in India in an unregulated market.

2️⃣ Nationalization (1973 - 2000)

• In 1973, the government nationalized the general insurance sector.

• 107 private companies merged into 4 government-run companies.

• The focus was on servicing customers, not competition on pricing or product differentiation.

3️⃣ The Liberalization Era (2000 - Present)

• In 2000, India opened the sector to private and foreign players.

• The focus shifted to simplifying products, digital processes, and improving customer experience.

• Insurance policies that once took months to process can now be issued in days or even instantly.

• Cashless claims processing became the norm in health & motor insurance.

With technology & digital transformation, insurance today is far more customer-friendly and accessible than ever before.

What Will Fuel the Growth of Insurance in India?

According to Sankar Mohan, four major drivers will shape the future of insurance in India:

1) Emerging Risks & New Insurance Products

• Cyber Insurance is a growing sector, covering both businesses & individuals from cyber threats.

• Covid-19 health insurance policies emerged in response to the pandemic.

• Businesses now have advanced liability covers for: ✅ Property Damage ✅ Loss of Profits ✅ Denial of Access Due to Calamities

Multinational companies have specialized global insurance solutions as they expand beyond India.

2) Government Policies to Expand Insurance Penetration

• Crop Insurance and Health Insurance for marginalized communities are pushing insurance penetration into rural areas.

• The government is actively encouraging microinsurance & subsidized coverage to protect farmers and small businesses.

(What is Crop Insurance? It covers financial losses due to unpredictable weather or production issues.)

3) The Opening Up of Trade Credit Insurance

• Traditionally, bad debts were considered a business risk, not something insurance could cover.

• Trade Credit Insurance is now helping businesses protect against unpaid invoices & credit defaults.

This is a game-changer for businesses operating on credit terms.

4) Technology & Digital Transformation in Insurance

Technology is revolutionizing the insurance sector by:

✅ Automating processes for faster customer service.

✅ Reducing fraud using AI & data analytics.

✅ Offering personalized pricing based on usage patterns.

However, insurers need a flexible mindset to keep up with evolving customer needs.

"Insurance has always been dynamic and ever-evolving. It will continue to change in the future too." — Sankar Mohan

Final Thoughts from Sankar Mohan

"I am optimistic about the future of the insurance industry. It has always been dynamic and ever-evolving. Therefore, it will keep evolving in the future too and will continue to keep us on our toes."

Conclusion

This conversation gave us a deep insight into the mind of an industry veteran. We are extremely optimistic about the future of insurance and the exciting innovations happening in the space.