India’s Insurance Industry Growing @ Double Digit Growth Rates
India’s insurance industry became 10th among the largest insurance markets in the world in 2013, rising from 15th in the year 2011. With a total market size of US$66.4 billion in 2013, the Indian insurance market accounts for 2 percent of the world’s annual insurance business, still a very low share. However, India’s insurance market has been growing constantly at double-digit growth rates and is expected to keep this momentum till 2021.
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Life Insurance Industry
India’s life insurance industry stands at the top of the list of largest active insurance policies; with above 360 million active policies. As of now, 24 life insurance companies are operational in India. The country’s life insurance industry is estimated to increase at double-digit compounded annual growth rates through 2019, targeting to touch US$1 trillion mark annual notional values by 2021.
Despite the low level of insurance penetration in the past, the Indian insurance industry after liberalization in 2000, has succeeded in raising the levels of insurance penetration from 2.3 (life 1.8 and non-life 0.7) in 2000 to 5.1 (life 4.4 and non-life 0.7) in 2010. And the market has been booming gradually. Now, it’s been turning into one of the most favored investment destinations for foreign investors and the domestic as well. Post liberalization, several national and international players compete and increase operations in the country.
Growing insurance awareness among Indian people, innovative product designs, and easy-to-access distribution channels are sustaining the growth of the insurance sector. Also, the government has opened various liberalization policies for private players. The Indian parliament has recently cleared the path block in the way of raising FDI (foreign direct investment) in the sector that will be seen in greater employment opportunities, improved customer services competitive premiums rates, etc. Through the passage of the Insurance Laws (Amendment), the Indian government has allowed the foreign investors to raise their share in an Indian insurance joint venture to 49 percent from earlier 26 percent.
As Per the BCG report
As per a report released by BCG (Boston Consulting Group), the Indian insurance sector is expected to touch US$ 400 billion in premium income by the end of the year 2020 making India one of the top three life insurance and top 15 non-life insurance markets.
The growth will also boost job opportunities such as – marketing, sales &distribution, actuarial, underwriting, operations, and investing departments. The coming decade will be for insurance professionals. Companies with sound financial health offer attractive remuneration and good incentives to retain their qualified employees. To tap this great opportunity, various institutions have started providing certificates, diplomas, and degrees programs.
Health Insurance Industry
As per the report, in the last five years, the health insurance industry achieve a tremendous height of growth and still, things are going on towards making a mark of double-digit growth. If facts are to be believed, the Compound Annual Growth Rate (CAGR) of 20 percent expanded during this time frame, from FY 2015 to FY 2020. According to the report of India Ratings and Research, this market is going to go even further in the coming period, private companies are growing even faster, because, private companies are gaining market share over public sector firms.
In recent years, the way Covid-19 hit the world it was obvious, to the increasing demand of health policy and the good thing about this policy is… finally people understand the use of health policy and the moreover they understand the value of the policy. Well, with some happy news for the health segment the agency comes with new advice to the insurance company. And the advice is it is essential for insurers to maintain adequate buffers over the regulatory minimum so as to be prepared for any unforeseen risk events.
Covid-19 became the reason after which such figures are being talked about, Covid-19 has affected every field to a large extent and has also shown its full effect on the mentality of the people, and perhaps this is the reason. Because of this, after knowing and seeing the effect of Covid-19, the public thought it right to give health insurance a chance.
Insurance is a basic need.
The way we spend our last few years, survival was a question to us and still, things are not under control. From time to time the new variant of Covid-19 comes and makes things worst for people and for the world. It is better than living in the fear of Covid-19 that we should look towards someone solution which will not only provide us security but also financial support because after the arrival of Covid-19, first of all, there is a lockdown and during this time you will not be able to earn, won’t bother too much.
Insurance policy tries to make things easy for you, no one knows when the time will turn out. In such a situation, health policy can provide another life to your life, health policy has become a basic necessity in today’s time. As we are moving towards the advanced world, the risk of new diseases is also increasing and in such a situation health insurance can provide you protection everywhere.
