Indian insurance sector to touch Rs.20 bn mark by 2010August 15th, 2008 - 12:59 pm ICT by IANS
New Delhi, Aug 15 (IANS) India’s insurance business will reach a level of Rs.20 billion in the next two years from the current level of Rs.500 billion, according to an industry lobby. “A growth of over 200 percent is likely to be seen in Indian insurance business by 2009-10 in which private insurance business would grow at 140 percent in view of aggressive marketing techniques,” said a report by the Associated Chambers of Commerce and Industry of India (Assocham).
“The state-owned insurance companies’ growth rate will be 35-40 percent,” the study said.
According to Assocham, in the last couple of years, the insurance sector had grown by 175 percent and the trend will emerge still better because of huge potential.
“On account of intense marketing strategies adopted by private insurance players, the market share of state-owned insurance companies like GIC (General Insurance Corp), LIC (Life Insurance Corp) and others have already come down to 70 percent in last four-five years from over 97 percent, and more intense competition is likely to be witnessed in the near future,” Assocham president Sajjan Jindal said.
“The private insurance players’ entry into insurance sector is still restricted since India has yet to open it up liberally. But even then, their rate of return to their subscribers and policy holders is estimated at about 35 percent against 20 percent of domestic insurance companies,” Jindal added.
Moreover, the state-run companies have limited number of policies to offer to their subscribers while the private players offer many more policies with premium amount and maturity period, he added.
Interestingly, the private sector insurance players have started exploring the rural markets in which until recently the state-run companies had the monopoly.
The chamber has projected that in rural markets, the share of private insurance players would increase substantially.
At present, India’s life insurance premium, as a percentage of GDP, was 1.8 percent against 5.2 percent in the US, 6.5 percent in Britain and eight percent in South Korea.
- Non-life insurers need to be prudent in underwriting risks: GIC - Aug 18, 2012
- LIC market share rises to 77 percent in 2010-11 - Aug 12, 2011
- GIC having a relook at obligatory reinsurance contracts - Aug 17, 2012
- Non-life insurers post 19 percent growth in April - May 31, 2011
- Private insurers upset over GIC cutting commission rates - Apr 14, 2010
- Reliance Life Insurance to hire 5,500 agents on payroll - Aug 16, 2012
- Life insurance had a great fall in September - Oct 21, 2010
- Moody's downgrades LIC, outlook stable - May 14, 2012
- IPO norms to be out once valuation method is finalised: IRDA chief - Sep 15, 2011
- Firewalls needed between banks and insurance firms: Survey - Mar 15, 2012
- Insurers to discuss revision in health, motor insurance - Jul 03, 2012
- GIC Re covered for Japan risks: Chairman - Mar 15, 2011
- Non-life insurers post 18 percent growth in May 2012 - Jun 28, 2012
- Economy revives but inflation, reforms sore points (2010 in Retrospect) - Dec 29, 2010
- Life insurance firms mull riders to take policyholders for a ride - Aug 01, 2010
Tags: aggressive marketing, assocham, chambers of commerce, chambers of commerce and industry, domestic insurance companies, general insurance, indian insurance business, indian insurance sector, industry of india, insurance premium, intense competition, intense marketing, jindal, marketing strategies, marketing techniques, maturity period, private insurance, private players, rs 500, sajjan