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Introduction
The insurance production of India consists of 57 insurance companies of which 24 are inside life insurance business also 33 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company. Apart from that, among the non-life insurers there are six public sector insurers. In addition to these, there is sole national re-insurer, namely, General Insurance Corporation of India (GIC Re). Other stakeholders inside Indian Insurance market include agents (individual also corporate), brokers, surveyors also third party administrators servicing health insurance claims.
Market Size
Government's policy of insuring the uninsured has gradually pushed insurance penetration in the country also proliferation of insurance schemes.
Gross premiums written inside India reached Rs 5.53 trillion (US$ 94.48 billion) inside FY18, with Rs 4.58 trillion (US$ 71.1 billion) from life insurance also Rs 1.51 trillion (US$ 23.38 billion) from non-life insurance. Overall insurance penetration (premiums as % of GDP) inside India reached 3.69 per cent inside 2017 from 2.71 per cent inside 2001.
In FY19 (up to October 2018), premium from new life insurance business increased 3.66 per cent year-on-year to Rs 1.09 trillion (US$ 15.46 billion). In FY19 (up to October 2018), gross direct premiums of non-life insurers reached Rs 962.05 billion (US$ 13.71 billion), showing a year-on-year growth rate of 12.40 per cent.
Investments also Recent Developments
The following are some of the major investments also developments inside the Indian insurance sector.
- As of November 2018, HDFC Ergo is inside advanced talks to acquire Apollo Munich Health Insurance at a valuation of around Rs 2,600 crore (US$ 370.05 million).
- In October 2018, Indian e-commerce major Flipkart entered the insurance volume inside partnership with Bajaj Allianz to offer mobile insurance.
- In August 2018, a consortium of WestBridge Capital, billionaire investor Mr Rakesh Jhunjunwala announced that it would acquire India’s largest health insurer Star Health also Allied Insurance inside a deal estimated at around US$ 1 billion.
- In September 2018, HDFC Ergo launched ‘E@Secure’ a cyber insurance policy for individuals.
- Insurance sector companies inside India raised around Rs 434.3 billion (US$ 6.7 billion) by way of public issues inside 2017.
- In 2017, insurance sector inside India saw 10 merger also acquisition (M&A) deals worth US$ 903 million.
- India's leading bourse Bombay Stock Exchange (BSE) will place up a joint venture with Ebix Inc to build a robust insurance distribution network inside the country by way of a new distribution interchange platform.
Government Initiatives
The Government of India has taken a figure of initiatives to increase the insurance industry. Some of them are as follows:
- In September 2018, National Health Protection Scheme was launched under Ayushman Bharat to provide coverage of up to Rs 500,000 (US$ 7,723) to more than 100 million vulnerable families. The scheme is expected to increase penetration of health insurance inside India from 34 per cent to 50 per cent.
- Over 47.9 million famers were benefitted under Pradhan Mantri Fasal Bima Yojana (PMFBY) inside 2017-18.
- The Insurance Regulatory also Development Authority of India (IRDAI) plans to point redesigned initial public offering (IPO) guidelines for insurance companies inside India, which are to looking to divest equity by way of the IPO route.
- IRDAI has allowed insurers to invest up to 10 per cent inside more tier 1 (AT1) bonds that are issued via banks to augment their tier 1 capital, inside command to expand the pool of eligible investors for the banks.
Road Ahead
The time to come looks promising for the life insurance production with several changes inside regulatory framework which will lead to more distant change inside the way the production conducts its business also engages with its customers.
The total insurance production is expected to reach US$ 280 billion via 2020. Life insurance production inside the country is expected grow via 12-15 per cent annually for the next three to five years.
Demographic factors such as growing middle class, young insurable population also growing awareness of the need for charge also retirement arrangement will support the growth of Indian life insurance.
Exchange Rate Used: INR 1 = US$ 0.0159 as on March 31, 2019
References: Media Reports, Press Releases, Press Information Bureau, Union Budget 2017-18, Insurance Regulatory also Development Authority of India (IRDA), Crisil
Disclaimer: This details has been collected by way of secondary research also IBEF is not responsible for any errors inside the same.
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This information is posted on label , the date 01-09-2019, quoted from GOOGLE Searcing https://www.ibef.org/industry/insurance-sector-india.aspx
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