The insurance industry of India consists of 57 insurance companies of which 24 are in life insurance business and 33 are non-life insurers.
marketing
Description
1. The insurance industry of India consists of 57 insurance companies of which 24 are in life insurance business and 33 are non-life insurers. Government's policy of insuring the uninsured has gradually pushed insurance penetration in the country and proliferation of insurance schemes. Gross direct premiums of non-life insurers in India reached INR 1366 2 crores in FY20 (up to September 2019), gross direct premiums reached Rs 41071 crores, showing a year-on-year growth rate of 14.47 per cent. Overall insurance penetration (premiums as per cent of GDP) in India reached 3.69 per cent in 2017 from 2.71 per cent in 2001. In FY19, premium from new life insurance business increased 10.73 per cent year-on-year to Rs 215000 crores. In FY20 (till July 2019), gross direct premiums of non-life insurers reached INR 570 crores, showing a year-on-year growth rate of 16.65 per cent. The market share of private sector companies in the non-life insurance market rose from 13.12 per cent in FY03 to 55.70 per cent in FY20 (up to April 2019).The non-life insurance companies witnessed a rise of 13.1 per cent in their collective premium in November to Rs 14,590 crores. In 2017, insurance sector in India saw 10 merger and acquisition (M&A) deals worth INR 90.3 crores The Government of India has taken a number of initiatives to boost the insurance industry. In September 2018, National Health Protection Scheme was launched under Ayushman Bharat to provide coverage of up to Rs 5, 00,000 to more than 100 million vulnerable families. The scheme is expected to increase penetration of health insurance in India from 34 per cent to 50 per cent. The future looks promising for the life insurance industry with several changes in regulatory framework which will lead to further change in the way the industry conducts its business and engages with its customers. The overall insurance industry is expected to reach INR 28000 crores by 2020. Life insurance industry in the country is expected grow by 12-15 per cent annually for the next three to five years. Demographic factors such as growing middle class, young insurable population and growing awareness of the need for protection and retirement planning will support the growth of Indian life insurance.
