INSURANCE

August 2024
For updated information, please visit www.Ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

Market Overview 6

Recent Trends and Strategies 17

Growth Drivers 20

Opportunities 24

Key Industry Contacts 29

Appendix 31

2
Executive summary
Crop, health and Rapidly growing insurance
motor insurance to segments
drive growth • As per the Insurance Regulatory and Development
Authority of India (IRDAI), India will be the sixth-largest
• In FY24, non-life players’ saw a insurance market within a decade, leapfrogging Germany,
premium income increase by Canada, Italy and South Korea.
19.5% year-over-year to Rs. • The regulatory developments would furthermore contribute
1,14,972 crore (US$ 13.8 billion) to the growth.
due to strong demand for health • The recent pandemic has emphasized the Importance of
and motor policies. healthcare on the economy, and health insurance would
• The Indian non-life insurance play a critical role In the effort to strengthen the healthcare
industry logged 14.86% growth ecosystem.
during the first half of FY24 as
compared to 15.30% growth for the

•
same period the previous year.
The business growth for FY24 was
Increasing private
driven by health (especially the
group segment), motor, and crop
sector contribution
Insurance. • With the introduction of new private sector
• The government’s flagship initiative companies, the insurance sector in India
for crop insurance, Pradhan Mantri gained momentum in the year 2000.
Fasal Bima Yojana (PMFBY), has • India allowed private companies in the
led to significant growth in the insurance sector in 2000, setting a limit on
premium income for crop FDI to 26%, which was increased to 49%
insurance. in 2014 and further increased to 74% in
• The long-term growth of motor the Union Budget (Feb 2021).
insurance would be driven by • The market share of private sector
growth In the automotive industry companies In the non-life insurance
which would boost the motor market rose from 15% in 2004 to 62% in
insurance market and increase FY23.
penetration amongst the uninsured • Private insurers like HDFC, ICICI and SBI
vehicles on road. have been some tough competitors for
providing life as well as non-life products
Source: News Articles, Invest India
to the Insurance sector in India.

3
Advantage India

4
Advantage India
1. Increasing Investments 4. Policy support
► Over the past nine years, the insurance sector
► As on date, 4,26,666 KCCs have been
has attracted significant foreign direct
sanctioned to fishers and fish farmers in all
investment (FDI) amounting to nearly Rs.
States/UTs.The government’s flagship
54,000 crore (US$ 6.5 billion), driven by the
initiative for crop insurance, Pradhan Mantri
government's progressive relaxation of
Fasal Bima Yojana (PMFBY), has led to
overseas capital flow regulations.
significant growth in the premium income for
► In April 2024, CCI has approved Axis Bank
crop insurance, In past eight years, 56.8
Limited's subscription to 14,25,79,161 equity
crore farmer applications have been enrolled
shares of Max Life Insurance Company Limited.
and 23.2 crore farmers received the claim.
► The IPO of LIC of India was the largest IPO
► Ayushman Bharat (Pradhan Mantri Jan
ever in India and the sixth biggest IPO globally
Arogya Yojana) (AB PMJAY) aims at
In 2022. As of November 2022, the listing of LIC
accounted for more than a third of the resources 1 4 providing a health cover of Rs. 5 lakh (US$
6,075) per family per year for secondary and
mobilised in the primary equity market.
tertiary care hospitalization.
► Insurance cover for 44.6 crore persons
ADVANTAG under PM Suraksha Bima and PM Jeevan
2. Robust Demand Jyoti Yojana was provided during FY23.
► As per the Insurance Regulatory and
E INDIA
Development Authority of India (IRDAI),
India will be the sixth-largest insurance
2 3 3. Attractive Opportunities
market within a decade, leapfrogging ► Insurance market in India is expected to
Germany, Canada, Italy and South Korea. reach US$ 222 billion by 2026.
► Robotic Process Automation (RPA) and AI
► Mr. Debashish Panda, Chairman, IRDAI
will occupy center stage in insurance,
informed that the insurance industry of
driven by newer data channels, better data
India became a Rs. 59 crore (US$ 7.1
processing capabilities and advancements
million) Industry as of February 2023.
In AI algorithms.
► India's life insurance sector showed strong ► Bots will become mainstream in both the
growth in the first quarter of FY25, with front and back-office to automate policy
first-year premiums surging by 22.91% servicing and claims management for
YoY to Rs. 89,726.7 crore (US$ 10.75 faster and more personalized customer
billion), up from Rs. 73,004.87 crore (US$ service.
8.75 billion) in the first quarter of FY24.

Source: News Articles, Invest India

5
 Market Overview

MARKET OVERVIEW

6
Evolution of the Indian Insurance sector

2017
1956-72 1993-99 2000-14 2015
onwards

▪ All life insurance ▪ Malhotra Committee ▪ Post liberalization, the ▪ In 2015, Government ▪ Insurance companies
companies were recommended opening up insurance industry recorded introduced Pradhan raised more than US$ 6
nationalized to form LIC the insurance sector to significant growth; the Mantri Suraksha Bima billion from public issues
in 1956 to increase private players. number of private players Yojna and Pradhan in 2017.
penetration and protect ▪ IRDAI, LIC and GIC Acts increased to 46 in 2017. Mantri Jeevan Jyoti ▪ The instability of the
policy holders from were passed in 1999, ▪ In December 2014, Bima Yojana. covid-19 pandemic
mismanagement. making IRDAI the Government approved the ▪ Government highlighted the necessity
▪ The non-life Insurance statutory regulatory body ordinance Increasing FDI Introduced Atal for consumers to Invest in
business was for Insurance and ending limit in Insurance sector from Pension Yojana and products that would
nationalized to form GIC the monopoly of LIC and 26% to 49%. This would Health Insurance in increase financial
In 1972. GIC. likely to attract Investment of 2015. security, one of them
US$ 7-8 billion. being life Insurance.

Notes: LIC - Life Insurance Corporation of India, GIC - General Insurance Corporation of India, IRDAI - Insurance Regulatory and Development Authority
Source: IRDAI, News Articles

7
IRDAI governs the Indian Insurance sector

▪ Insurance Regulatory and Development Authority (IRDAI)

• Established in 1999 under the IRDAI Act

• Responsible for regulating, promoting and ensuring orderly growth of the Insurance and re-insurance business In India

Ministry of Finance
Government of India

Insurance Regulatory and

Development Authority
(IRDAI)

Specialised Standalone Health Re-insurance (including Foreign

Life insurance (26 General insurance
Insurers Insurance Reinsurers Branches/Lloyd's India)
players) (27 players)
(2 players) (6 player) (12 players)

Public (1) Public (4) Public (2) Private (6) Public (1)

Private
Private (25) Private (23)
(11)

Source: IRDAI

8
Increasing penetration and density of Insurance over the years

Insurance Penetration (Premiums as % of GDP) Insurance Density (Premiums Per Capita) (US$)

5 100
4.2 4.2 90
4.0 22 22
4 3.7 3.7 3.8 80
3.5 1.0 1.0
3.4 1.0 19
0.9 70 19
0.9 1.0 18 19
0.7 0.8 69.0 70.0
3 3.2 3.2 60
3.0 13.2 58.0 59.0
2.7 2.7 2.8 2.7 2.8 50 11 11.5 55.0 55.0
2 40 46.5
44.0 43.2
30

1 20

10

0 0
2016 2017 2018 2019 2020 2021 2022 2023 2015 2016 2017 2018 2019 2020 2021 2022 2023

Life Non-Life Life Non-Life

▪ Premiums from India’s life insurance industry is expected to reach Rs. 24 lakh crore (US$ 317.98 billion) by FY31.

▪ The penetration of Indian Insurance industry was less than 5% of the GDP. IRDAI data shows that India’s Insurance penetration was 4% of the
GDP In FY23.

▪ In 2023, India's insurance premium penetration accounted for 4% of the GDP, with life insurance making up 3% and non-life insurance comprising
1%.

Source: News Articles

9
Vibrant life insurance market

Life Insurance Premiums (US$ billion)

60.0

50.0

53.3

49.5
49.2
40.0

43.9
42.0
41.0
30.0

45.3
45.0
40.1
37.1
36.7
20.0

30.7
30.1
10.0

53.7

10.8
0.0
0.0
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25*

New Business Premium Renewal Premium

▪ In 2025 (April- June 2024), life insurers’ new business premiums grew to US$ 10.8 billion, according to Life Insurance Council data.

▪ India is the 10th largest life Insurance market globally

▪ The insurance penetration has gone up to 4% in 2023, general insurance has penetration of 1% and it is planning to increase to 1.5% by 2030.

▪ The Union Budget 2023-24 has proposed to limit the income tax exemption on the proceeds of high-value life insurance policies. Mooted as part of an
emphasis on better targeting of tax concessions and exemptions, the proposal means that income from life insurance policies with an aggregate premium
up to Rs. 5 lakh (US$ 6,075) will be exempt from taxation.

▪ As per a report published by Deloitte, In India the insurance market is slated to increase fourfold in size over the next 10 years. The life insurance sector
is the biggest in the world with about Rs. 70,000 crore (US$ 8.5 billion) premiums yearly, and it Is growing at a positive rate of 17% every year.

Note: Figures are as per latest data available, share based on Premium (within India) Underwritten Insurers, *- June 2024
Source: Deloitte - Redefining Insurance, News Articles, Invest India

10
Increasing share of private sector Insurers

First Year Premium Share of public and private sector in Life Share of public and private sector in General and Health
Insurance In India (%), 2025 (Upto 30th June 2024) Insurance in India (%), 2024 (Until September 2023)

4.3%
LIC 10.2%
Private sector Private sector
35.98%

Public sector
53.6%
64.02% 32.0% Standalone health
insurers

Specialized insurers

▪ The insurance industry in India has witnessed an impressive growth rate over the last two decades driven by greater private sector participation
and an improvement in distribution capabilities, along with substantial improvements in operational efficiencies.
▪ In the first-year premium share of life insurance in India, LIC dominates with 64.02%, while the private sector holds 35.98%.
▪ Among the private players, SBI Life, HDFC Life and ICICI Prudential Life led the industry in premium collection. SBI Life collected Rs. 7,032.7
crore (US$ 845 million) premium, while HDFC Life and ICICI Prudential Life received Rs. 6,540.4 crore (US$ 785 million) and Rs. 3,768.5 crore
(US$ 452 million), respectively.

Note: Figures are as per latest data available, share based on Premium (within India) Underwritten Insurers
Source: IRDAI, Life Insurance Council, Invest India

11
LIC continues to dominate life Insurance segment

▪ In the April-June period of FY25, the Life Insurance

Premiums Market Share in First Year Life Insurance FY25
Corporation of India (LIC) recorded a 28.1% YoY increase in (April- June 2024)
new business premium.
▪ Life Insurance Corporation of India (LIC) has been recognized
as the leading insurance brand, boasting a consistent brand
value of US$ 9.8 billion, a brand strength index score of 88.3.
▪ In January 2024, the life insurance industry witnessed a 27%
LIC
surge in revenue from new policy sales, with a total business
16.66%
premium of US$ 4.04 billion (Rs. 33,559 crore) collected HDFC Standard Life
compared to US$ 3.18 billion (Rs. 26,423 crore) in January
4.20%
2023. SBI Life Insurance
▪ With nearly 58.87% of the new business market share in 7.84%
ICICI Prudential Life
FY24, Life Insurance Corporation of India was the only public Insurance
7.29% 64.02%
sector life Insurer in the country, continued to be the market Others
leader.
▪ The state-run insurance behemoth LIC alone contributed over
58.87% to the total new business premium collection. The
insurer received close to Rs. 2.22 lakh crore (US$ 26.65
billion) as premium in FY24 compared to Rs. 2.31 lakh crore
(US$ 28.28 billion) in FY24.

Note: Figures are as per latest data available, share based on Premium (within India) Underwritten Insurers
Source: Life Insurance Corporation, IRDAI, News Articles

12
Strong growth in non-life Insurance market

Gross premiums written of non-life Insurers (US$ billion) Number of Non-Life Insurance Policies (million)

30.00 350.0

300.0
25.00

301.8
250.0

253.1
20.00

236.2
232.3
200.0
15.00 31.00
28.14

182.8
26.49 26.52 25.69 150.0

161.2
10.00

126.5
126.1
100.0

116.7
5.00 50.0

0.00 0.0
FY20 FY21 FY22 FY23 FY24* FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

▪ India is the 4th largest general insurance market in Asia and the 14th largest globally.

▪ In FY23, non-life insurers (comprising general insurers, standalone health insurers and specialized insurers) recorded a 16.4% growth in gross
direct premiums. In India, gross premiums written off by non-life insurers reached US$ 31 billion in FY23 and US$ 25.69 billion in FY24 (until
December 2023), from US$ 28.14 billion in FY22, driven by strong growth from general insurance companies.

▪ No of non-life insurance policies witnessed a growth from 253.1 million in FY22 to 301.8 million in FY23.

▪ The Insurance industry in India has 58 insurance companies, including 34 non-life insurers (25 general insurers, 7 standalone health, 2
specialized insurers). Going forward, general insurance companies will be key beneficiaries of the opening-up of economies, especially with
Improved trade activity and increasing demand for motor and health insurance. Strong growth in the automotive Industry over the next decade
is expected to boost the motor Insurance market

Note: * Until December 2023

Source: Life Insurance Corporation, IRDAI, News Articles

13
Shares in non-life insurance market: Health Insurance leads
▪ Non-life insurers include general insurers, standalone health insurers and
specialised insurers.

▪ The main non-life insurance products offered by the companies in India Non-Life Insurance Gross Direct Premiums FY23
include motor insurance, health insurance, fire insurance, and marine
insurance, among others. The non-life insurance industry is driven by the
growing demand for a number of associated sectors such as the
automobile industry, and the healthcare industry.

▪ Robust demand for health and motor covers buoyed non-life

players' premium income in FY24 (until September 2023) to Rs. 1,43,802 2.73% 1.97%
crore (US$ 17.29 billion) , a growth of 14.86% on-year. Health

▪ Motor insurance accounted for 31.6% of the non-life insurance premiums 9.32% Motor Total
earned, followed by health insurance at 35.3%, in FY23. Post-Covid
rising demand for personal mobility space is leading to a shift In vehicle 35.29% Other
ownership patterns and may create an opportunity for motor insurers. 19.05%
Fire
▪ The health insurance segment has grown by 23.2% for FY23, while fire
PA
insurance and liability insurance observed 11.1% and 16.0% growth,
respectively in the same period. Marine Total
31.64%
▪ Government schemes and financial inclusion initiatives shall have helped
in driving the adoption & penetration across all segments. The
government’s flagship Initiative for crop insurance (PMFBY) has led to
significant growth in the premium income for crop insurance, and now
covers over 55 million farmer applications year-on-year. Even during the
COVID-19 lockdown period, nearly 70 lakh farmers have benefitted from
It, and claims worth Rs. 87.4 billion (US$ 1.2 billion) were transferred to
the beneficiaries.

Source: General Insurance Council, IRDAI, Invest India

14
Key players in the non-life Insurance segment

▪ There are 34 non-life insurers in India. Market Share of Major Companies in Terms of Gross Direct
Premium collected (FY24 Until December 2023)
▪ Major private players are New India, ICICI Lombard, Bajaj Allianz,
United India, Oriental Insurance, HDFC Ergo.

▪ The non-life insurance market in India reached US$ 25.7 billion in

New India
FY24 ( Until December 2023).

▪ Economic growth of the country, expansion of the associated

industries like automobile, and healthcare, and strengthening of the ICICI Lombard
online distribution channel are contributing to the growth of the 13.3%
market.
Bajaj Allianz
8.8%
▪ According to figures released by the General Insurance Council, the
Total size:
general Insurance segment has reported a 16.81% growth during the 51.4% US$ 25.7 7.3% United India
seven-month period that ended in October 2023 with the gross billion
premium underwritten rising to Rs. 143,689.92 crore (US$ 17.22 6.6%
billion) from Rs. 123,013.42 crore (US$ 14.74 billion) In the same 6.3% Oriental Insurance
6.3%
period of last year.

HDFC Ergo

Others

Source: General Insurance Council, News Articles

15
Shift towards non-linked Insurance plans

▪ The industry is witnessing a shift towards traditional non-linked Share of linked and non-linked Insurance premium
insurance plans.

▪ In FY23, the linked premium was at 13% and 87% in Non-linked 100%
premiums.
90%
▪ Previously, life insurance policy proceeds were exempt from
taxation under Section 10(10D) of the Income-Tax Act, regardless 80%
of the premium amount, provided specific conditions were met.
70%
However, effective April 1, 2023, maturity proceeds from
premiums surpassing Rs. 5 lakh annually are subject to taxation. 60%
86% 85% 86% 86% 83% 87%
87% 87%
50%

40%

30%

20%

10% 17%
13% 13% 14% 15% 14% 14% 13%
0%
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

Linked Premium Non linked Premium

Source: IRDAI Annual Report, Life Insurance Council

16
 Recent Trends and Strategies

RECENT TRENDS AND STRATEGIES

17
Notable trends
2. GROWING MARKET SHARE OF 3. LAUNCH OF APPS
PRIVATE PLAYERS ▪ In August 2023, HDFC ERGO General Insurance
announced a one-of-its-kind Insurance ecosystem –
▪ The insurance industry in India has witnessed here app, a unique proposition which aims to
an impressive growth rate over the last two address consumers’ anxiety towards health and
1. EMERGENCE OF NEW decades driven by the greater private sector mobility and provide convenience and access to
participation and an Improvement in save the cost of their daily expenses on healthcare
DISTRIBUTION CHANNELS and motor vehicles.
distribution capabilities, along with substantial
▪ The growth of the insurance ▪ In October 2022, Policybazaar's PBPartners
Improvements in operational efficiencies. launched its mobile app to facilitate the ease of
market is being supported by
important government initiatives, Insurance business for its advisors digitize their
strong democratic factors, insurance business.
conducive regulatory environment, ▪ Canara HSBC Life Insurance launched its ‘Canara
increased partnerships, product HSBC Life Insurance App’ on the 75th Independence
innovations, and vibrant Day of India. The app, available on Android, IOS
distribution channels. devices and a web portal, offers access to policy
▪ Although traditional channels details, the option to receive timely alerts, pay the
continue to be prevalent, premium, and track fund value among others.
regulatory adjustments like
collaborations between banks and
insurers and more lenient
2 3 4. INSURANCE PRICE INDICES
commission payout regulations are ▪ India's first and foremost
bolstering these channels. insurance price index has been
▪ Given the substantial presence of launched by one of India's leading
active Internet users, digital online insurance web aggregators,
channels, e-commerce platforms, PolicyX.Com. By tracking changes
and online ecosystems are & patterns In premium price rates,
anticipated to emerge as the 1 4 the price index would allow
favored distribution methods, consumers to have a transparent
guaranteeing broader accessibility, and better understanding of
particularly In remote regions. Insurance prices.

Source: News Articles

18
Strategies adopted

2. STRATEGIC PARTNERSHIP 3. M&A

▪ Kotak Mahindra Bank, Kotak General Insurance, and Zurich
Insurance Company have finalized agreements for an ▪ Merger and acquisitions will continue to be a part and
acquisition. Zurich will invest around US$ 487 million (Rs. parcel of the insurance sector, which is a highly capital-
4,051 crore) for a 51% stake in Kotak General Insurance. intensive sector and can accommodate new entrants
Additionally, Zurich plans to acquire a further 19% stake with specialized skill sets having long-term vision. The
within three years. past developments in this sector and recent decision of
▪ As Informed in September 2023, the UK and India have the Mumbai National Company Law Tribunal (NCLT)
agreed to launch a partnership to boost cross-market allowing merger of Exide Life Insurance with HDFC Life
Investment by the insurance and pension sectors. Is an indication that entities without requisite expertise
may quit the sector.
1. PRODUCT LAUNCH
▪ Insurers can now launch new health 4. RECENT
insurance products without IRDAI’s DEVELOPMENT
nod. Earlier the flexibility was given for
group insurance products but now ▪ Wipro Limited and NVIDIA have
retail products have also come under partnered to offer healthcare firms
the new norms. AI-driven solutions for faster
▪ The insurance industry is expected to deployment of generative artificial
intelligence (gen AI). Using
use this opportunity for Introduction of
customized and innovative products, 2 3 NVIDIA AI Enterprise software,
Wipro will enhance its healthcare
expansion of the choices available to
the policyholders in order to address offerings.
the dynamic needs of the market, ▪ In August 2023, Tata AIA launched
which will further help In enhancing a ULIP plan with benefits of critical
the insurance penetration In India. Illness cover- Tata AIA Pro Fit.
▪ Probus Insurance receives US$
1 4 6.7 million In funding from a Swiss
impact fund In December 2021.

Source: CEAMA, Electronic Industries Association of India, Economic Times, *EY – Re-imagining India’s M&E sector, National Policy on Electronics 2019, News Articles

19
 Growth Drivers

GROWTH DRIVERS

20
Growth drivers for insurance In India… (1/2)
▪ Over the past nine years, the insurance sector has attracted
substantial foreign direct investment amounting to nearly US$ 6.5
billion (Rs. 54,000 crore), driven by the government's progressive
relaxation of overseas capital flow regulations. GDP Per Capita at Current Prices (US$)

▪ The insurance industry has undergone numerous transformations in

terms of new developments, modified regulations, proposals for 3,000
amendments and growth in 2022. These developments have opened
new avenues of growth for the industry while ensuring that insurers

2,762
stay relevant with changing times and the latest digital disruptions. 2,500

2,539
▪ The IRDAI is vigilant and progressive and is determined to achieve its

2,398
2,334
mission of ‘Insurance for all by 2047’, with aggressive plans to

2,267
address the industry’s challenges.

2,135
2,000

1,983
▪ The growth of the insurance market is being supported by important
government initiatives, strong democratic factors, conducive

1,749
regulatory environment, Increased partnerships, product innovations, 1,500
and vibrant distribution channels.
▪ Insurance Industry was largely dominated by offline channels like
corporate agents, offline brokers or banks. Today, rapid digitization, 1,000
product innovation and progressive regulation policies have made it
possible for consumers to buy insurance through multiple distribution
channels with the click of a button. 500
▪ As per a report by Cafemutual of financial disclosures revealed that
the standalone health Insurers recorded a combined net profit of Rs.
460 crore (US$ 55.5 million) in FY23. The industry recorded a 0

2016

2017

2018

2019

2020

2021

2022

2023
massive growth of 125% in terms of net profit.
▪ In FY23, over 2.22 lakh new agents joined the life Insurance industry,
as per the data by the Life Insurance Council.

Source: International Monetary Fund, World Economic Outlook Database, April 2018, News Articles

21
Growth drivers for insurance In India… (2/2)

1. Growth in financial 5. Digital disintermediation

Industry ▪ NHCX is a digital platform created to
streamline the claims process by bringing
▪ India’s robust economy is expected to
together all stakeholders, including payers
sustain the growth in insurance
(insurers, third-party administrators, and
premiums written. Higher personal 5 government scheme administrators) and
disposable incomes would result in
higher household savings that will be
1 providers (hospitals, laboratories,
polyclinics) on a single platform.
and

channelled Into different financial ▪ Insurers are swiftly integrating technologies

savings instruments like Insurance and such as robotic automation, artificial
pension policies. Intelligence, cloud computing, and data
analytics. These advancements are
revolutionizing both front-end and back-end
2. Innovation and efficiency 2 4 operations, ushering In a era where hyper-
personalized products and omnichannel
► Insurance market in India is expected servicing are becoming standard practice.
reach US$ 222 billion by 2026. Robotic
Process Automation (RPA) and Artificial
Intelligence will occupy center stage in
3
insurance, driven by newer data 4. Growth in specific
channels, better data processing
capabilities and advancements In AI 3. Competition segments
algorithms. • The business growth for the first half of FY23
► Bots will become mainstream in both the • The insurance industry in India has witnessed was driven by health (especially the group
front and back-office to automate policy an impressive growth rate over the last two segment), motor, and crop insurance.
servicing and claims management for decades driven by the greater private sector • The government’s flagship initiative for crop
faster and more personalized customer participation and an improvement in insurance, Pradhan Mantri Fasal Bima Yojana
service. distribution capabilities, along with substantial (PMFBY), has led to significant growth In the
Improvements in operational efficiencies, premium income for crop insurance.
thereby resulting in an Increasing number of • The long-term of motor insurance would be
insurance providers with various sophisticated driven by growth in the automotive industry
products at competitive prices. which would boost the motor Insurance market
and increase penetration amongst the
Source: Invest India, News Articles uninsured vehicles on road.

22
Favorable policy measures aid the sector

6. National Export Insurance

1. Amendment in Foreign Exchange Account (NEIA) scheme
Management Act (FEMA) NEIA provides additional support to the insurance
In April 2022, the government has amended rules cover provided by Export Credit Guarantee
of the Foreign Exchange Management Act, Corporation of India Ltd for project exports making
paving the way for up to 20% foreign direct Indian project exporters more competitive and gain a
Investment in LIC IPO. stronger foothold In various jurisdictions, highlighting
India’s capabilities to execute large projects abroad.

2. ‘Ayushman Bharat
1 6 5. Pradhan Mantri Jeevan
Jyoti Bima Yojana
PMJAY SEHAT’ scheme
Risk coverage under this scheme is for
It is the world’s largest health Rs. 2 Lakh (US$ 2,429) in case of
insurance/assurance scheme fully death of the insured, due to any
financed by the government, provides a reason. The scheme is being offered by
cover of Rs. 500,000 (US$ 6,074) per
family per year for secondary and 2 5 Life Insurance Corporation and all other
life Insurers who are willing to offer the
tertiary care hospitalization across product on similar terms with
public and private empaneled hospitals necessary approvals and tie up with
In India. banks for this purpose.

3. ‘COVID-19’ Insurance Policy 4. Union Budget

The 2024-25 Interim Budget elevating agriculture's
COVID 19 insurance, like many other life
insurance products, provides financial protection
3 4 value addition and augmenting farmers' income by
boosting post-harvest investments, aiding 11.8
against the most terrifying human life event: crore farmers under PM-KISAN SAMMAN
death. In light of this, the Insurance Regulatory YOJANA, ensuring crop insurance for 4 crore
Development Authority of India (IRDAI) has farmers.
authorised two basic Covid-19 Health Insurance The Union Budget 2023-24 had proposed to
policies, Corona Kavach and Corona Rakshak, to provide that where the aggregate of premium for
help consumers protect themselves from the life Insurance policies (other than Unit-linked
financial burden of Covid-19 medical bills. Insurance Plan) issued on or after April 01, 2023, is
above Rs. 5 lakh (US$ 6,075), income from only
those policies with aggregate premium up to Rs. 5
Source: Press Information Bureau, PMJJBY,Ayushman Bharat PMJAY SEHAT, News Articles
lakh (US$ 6,075) shall be exempt.
23
 Opportunities

OPPORTUNITIES

24
India’s insurance market offers a host of opportunities across
business lines

1. Crop insurance 5. Low-income urban

5 and pension markets
1
Opportunities
For Indian
Insurance
Market
2. Micro-insurance 2 4 4. Motor insurance
markets

3. Health insurance markets

25
Non-life insurers: Motor insurance markets

Break-up of Non-life Insurance Market In India FY23 Automobile Sales in India (million units)

1.97% 30.00
2.73%
25.00 26.27
Health 24.97
9.32% Motor Total 23.80
Other 20.00 21.86 21.55 21.20
35.29% 20.47
Fire 18.62
PA 15.00 17.51
19.05%
Marine Total
10.00

31.64% 5.00

0.00
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

▪ India is the 4th largest general insurance market in Asia and the 14th largest globally.

▪ In FY23, non-life insurers (comprising general insurers, standalone health insurers and specialized insurers) recorded a 16.4% growth in gross
direct premiums.

▪ The Indian health insurance market accounted for 35.29% of the entire Non-Life Insurance Market In FY23.

▪ As of FY24, automobile sales in India reached 23.8 million units, With the surge In automobile sales, there will also be an Increase in motor
insurance.

Note: E -estimates, CAGR - Compound Annual Growth Rate, ACMA - Automotive Component Manufacturers Association of India
Source: IRDAI, ACMA, SIAM

26
Non-life insurers: health insurance markets

1
Health insurance market
▪ In the fiscal year 2023-24, India’s non-life insurance sector saw notable growth, driven mainly by the health and motor insurance
segments. Health insurance premiums exceeded Rs. 1 trillion (US$ 12.02 billion), reflecting a 20.2% increase.
▪ At present, there is a rise in the demand for healthcare insurance among the masses due to increasing medical costs. This, coupled with
the growing geriatric population, represents one of the key factors offering a favorable market outlook in India.
▪ Besides this, the Government of India is launching various schemes, such as the Pradhan Mantri Jan Aarogya Yojana (PM-JAY),
Ayushman Bharat Yojana, Pradhan Mantri Suraksha Bima Yojana, and Aam Aadmi Bima Yojana (AABY) to provide health insurance to
the economically weaker section of the country. They are also providing comprehensive healthcare facilities to central government
pensioners and officials under the Central Government Health Scheme (CGHS) in the country.
▪ ‘Ayushman Bharat PMJAY SEHAT’ scheme: It is the world’s largest health insurance/assurance scheme fully financed by the
government, provides a cover of Rs. 500,000 (US$ 6,074) per family per year for secondary and tertiary care hospitalization across
public and private empaneled hospitals in India.
▪ COVID-19 Insurance Policy: COVID 19 Insurance, like many other life insurance products, provides financial protection against the most
terrifying human life event: death. In light of this, the Insurance Regulatory Development Authority of India (IRDAI) has authorized two
basic Covid-19 Health Insurance policies, Corona Kavach and Corona Rakshak, to help consumers protect themselves from the financial
burden of Covid-19 medical bills.

2
Smartphone insurance
▪ The Indian smartphone insurance segment is estimated to reach US$ 500 million by 2025, increasing at a CAGR of 29%. 500 million
users are currently using smartphones and this figure could Increase to ~1 billion in the next five years, adding 78 million users each
year.

Note: RSBY - Rashtriya Swasthya Bima Yojana, ESIC - Employees’ State Insurance Corporation, MREGA - Mahatma Gandhi National Rural Employment Guarantee Act., NSSO

27
Strong potential in crop Insurance
▪ The Interim Budget for 2024-25 aims to enhance value addition in
agriculture and boost farmers' income. It plans to increase investment
in post-harvest activities, provide financial aid to 11.8 crore farmers
also offered crop insurance to 4 crore farmers, and promote self- Farmers Insured Under PMFBY (In million)
reliance in oilseeds.

▪ In past eight years, 56.8 crore farmer applications have been enrolled 120.00
under the scheme during the Rabi and Kharif seasons, under PMFBY
104.67
scheme.
100.00
▪ Awareness about crop insurance in India is 38.8%, and still, crop 88.30
insurance market in India is the largest in the world.
79.79
▪ In 2016, the Indian government introduced the crop insurance 80.00 75.80

scheme known as Pradhan Mantri Fasal Bima Yojana (PMFBY) to

61.47
expand crop insurance coverage and bridge the agricultural
60.00 53.80
protection gap faced by farmers In the event of adverse weather
events. 43.70

▪ Since then, the new insurance scheme has created a much more 40.00 34.91
33.09
32.01 30.67
stable and robust system to support farmers when they most need
help. The combination of state-of-the-art technology, extensive 20.64 20.73 21.10

coverages and new, more efficient processes replaced the older 20.00 13.79 13.00
approach to crop insurance and compensating farmers for their loss.

▪ At the heart of PMFBY Is the crop insurance portal, which ends 0.00
archaic hardcopy declarations. In turn, digitising the process has FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
ensured better data consistency, data at the farmer level, reduced
payment duplication, and end-to-end transparency to ensure Loanee Non-Loanee
payments reach the end recipient.

Note: *Until Kharif Season

Source: Agricultural Insurance Company of India Annual Report, Department of Agriculture and Cooperation, IRDAI, Live mint, PTI

28
Key Industry Contacts

29
Key industry contacts

Agency Contact Information

3rd Floor, Parisrama Bhavan, Basheer Bagh, Hyderabad-500

004
Insurance Regulatory and Development Phone: 91-040-23381100
Authority (IRDAI) Fax: 91-040-66823334
E-mail: Irda@irda.gov.in
Website: www.Irdai.gov.In

5th Floor, Royal Insurance Building, 14, Jamshedji TATA Road,

Churchgate, Mumbai-400020
Phone: 91-22-22817511, 22817512
General Insurance Council
Fax: 91-22-22817515
E-mail: gicouncil@gicouncil.In
Website: www.gicouncil.In

4th Floor, Jeevan Seva Annexe Bldg. S. V. Road, Santacruz

(W),
Life Insurance Council Mumbai-400054
Phone: 91-22-26103303, 26103306
E-mail: ninad.narwilkar@lifeinscouncil.org

30
Appendix

31
Glossary

▪ CAGR: Compound Annual Growth Rate

▪ IRDAI: Insurance Regulatory and Development Authority

▪ IPO: Initial Public Offering

▪ FDI: Foreign Direct Investment

▪ LIC: Life Insurance Corporation of India

▪ GIC: General Insurance Corporation of India

▪ NBFC: Non-Banking Financial Company

▪ NGO: Non-Governmental Organisation

▪ RSBY: Rashtriya Swasthya Bima Yojana

▪ PFRDA: Pension Fund Regulatory and Development Authority

▪ GDP: Gross Domestic Product

▪ ESIC: Employees State Insurance Corporation

▪ FY: Indian Financial Year (April to March)

▪ So, FY12 Implies April 2011 to March 2012

▪ GOI: Government of India

▪ Rs: Indian Rupee

▪ US$ : US Dollar

▪ Where applicable, numbers have been rounded off to the nearest whole number

32
Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2005 44.11
2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24
2008 43.42
2008-09 45.91
2009 48.35
2009-10 47.42
2010 45.74
2010-11 45.58
2011 46.67
2011-12 47.95
2012-13 54.45 2012 53.49
2013-14 60.50 2013 58.63
2014-15 61.15 2014 61.03
2015-16 65.46 2015 64.15
2016-17 67.09 2016 67.21
2017-18 64.45
2017 65.12
2018-19 69.89
2018 68.36
2019-20 70.49
2019 69.89
2020-21 73.20
2020 74.18
2021-22 74.42 2021 73.93
2022-23 78.60 2022 79.82
2023-24 82.80 2023 82.61
2024-25** 83.42 2024* 83.22

Note: *- Until June 2024, **- April-June 2024

Source: Foreign Exchange Dealers’ Association of India

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