Insurance Sector Waking Up To $50 bn Market

Destination & theme-based weddings are new drivers of insurance:

- Ravi

Wedding insurance was launched a few years ago in India, but its failed to attract customers. It continues to be restricted to high-profile customers. People’s traditional mindset about wedding ceremonies, unpopularity of the product and old distribution channels used by insurance companies are the main challenges that the insurance companies face in propagating wedding insurance.

WEDDING MARKET & RISKS

The developing wedding market in India has created opportunities for insurance companies. The market is valued at an estimated $50 billion, which is second only to the United States according to The Hindu Business Online. The market is predicted to grow at 20-25% annually for the next few years. India’s median marriage age is set to be as low as 29 years by the year 2020.

The budget is not a constraint for Indian marriages. According to a Matrimony.com survey completed in 2018, as much as 20.6% of the participating females were going to spend `1-2 million on their weddings, whereas the figure stood at 11.2% for males.