The education sector in India is referred to as a recession-proof sector. The term in itself voices volumes about its growth prospects which is also apparent through the past trend and a current report that proposes that it shall swell from its current industry size of USD 247 million at a compounded annual growth rate of 52% to reach USD 1.96 billion by 2021. The perpetual rise in the number of educational universities, 367 in FY07 to 877 in FY20, also points out the substantial increment in the size of the education sector in India.
Today, a middle-class family spends the maximum portion of its income on education even before the prerequisites are met (food: groceries). The momentum is being witnessed due to the humongous youth population in India, of which only a small percentage has been enrolled for education leaving behind an enormous scope for further expansion. The rising income levels, need for training and skill development amongst the working class, invent of new technologies such as artificial intelligence, increased awareness amongst rural Indians about the importance of education are few important reasons for the expansion of the sector. Online transition in the education sector has been essential progress in this recent pandemic era.
With changing demands, the sector is also amid a radical change. The
onus has now shifted from parents to the board and education institutes, revealing
them to many operation and transactional risks. They are meant to safeguard the
children on campus, meet the ongoing compliances, look after possible cybersecurity threats, meet parent expectations, maintain the latest curriculum and
excellent teaching standards, etc. Insurance can act as their shield against
such risks and protect them against all possible threats.
