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    Growth of Insurance Sector in India

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    Harsh Sharma
    The insurance industry in India has experienced significant growth post-liberalization and is expected to reach $280 billion by 2020. There are 57 insurance companies in India, with Life Insurance Corporation as the sole public sector life insurer and 6 public sector non-life insurers. Total insurance premiums reached $94.48 billion in FY2018, with life insurance premiums accounting for $71.1 billion and non-life premiums at $23.38 billion. The government has launched various schemes to boost insurance penetration and protect the uninsured.

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    Growth of Insurance Sector in India

    Uploaded by

    Harsh Sharma
    30 views8 pages
    The insurance industry in India has experienced significant growth post-liberalization and is expected to reach $280 billion by 2020. There are 57 insurance companies in India, with Life Insurance Corporation as the sole public sector life insurer and 6 public sector non-life insurers. Total insurance premiums reached $94.48 billion in FY2018, with life insurance premiums accounting for $71.1 billion and non-life premiums at $23.38 billion. The government has launched various schemes to boost insurance penetration and protect the uninsured.

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    UNIT1, Point B

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    The insurance industry in India has experienced significant growth post-liberalization and is expected to reach $280 billion by 2020. There are 57 insurance companies in India, with Life Insurance Corporation as the sole public sector life insurer and 6 public sector non-life insurers. Total insurance premiums reached $94.48 billion in FY2018, with life insurance premiums accounting for $71.1 billion and non-life premiums at $23.38 billion. The government has launched various schemes to boost insurance penetration and protect the uninsured.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    30 views8 pages

    Growth of Insurance Sector in India

    Uploaded by

    Harsh Sharma
    The insurance industry in India has experienced significant growth post-liberalization and is expected to reach $280 billion by 2020. There are 57 insurance companies in India, with Life Insurance Corporation as the sole public sector life insurer and 6 public sector non-life insurers. Total insurance premiums reached $94.48 billion in FY2018, with life insurance premiums accounting for $71.1 billion and non-life premiums at $23.38 billion. The government has launched various schemes to boost insurance penetration and protect the uninsured.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    GROWTH OF INSURANCE

    SECTOR IN INDIA
    • The insurance industry of India consists of 57
    insurance companies of which 24 are in life
    insurance business and 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.
    • Government's policy of insuring the uninsured has
    gradually pushed insurance penetration in the
    country and proliferation of insurance schemes.
    • Gross premiums written in India reached Rs 5.53
    trillion (US$ 94.48 billion) in FY18, with Rs 4.58
    trillion (US$ 71.1 billion) from life insurance and Rs
    1.51 trillion (US$ 23.38 billion) from non-life
    insurance. Overall insurance penetration (premiums
    as % of GDP) in India reached 3.69 per cent in 2017
    from 2.71 per cent in 2001.
    • Post-liberalisation, the insurance industry in
    India has recorded significant growth. The
    Indian insurance industry is expected to grow
    to US$ 280 billion by FY2020, owing to the
    solid economic growth and higher personal
    disposable incomes in the country.
    • The life insurance was carried on by the private insurance
    before 1956, but since January 1956 the life insurance
    business came under the control and ownership of
    government.
    • The life insurance business has tremendously increased. It
    has gone up from 227.67 crores in 1957 to Rs. 734.72
    crores in 1963 and to Rs. 1,025.80 crores in 1970 and
    again to Rs. 8787.26 crores in 1980-81.
    • Further 80,560.88 crores in 1993-94 and 13,033.38
    crores in 1985.
    • 2,88,503.80 crore in 2002.
    Progress of General Insurance Business
    • Has grown after nationalization.
    • With the entry of private insurance companies in
    India, from the year 2000 onwards, the insurance
    business has been grown to a certain extent.
    • During 2002-2003, the total premium of general
    insurance business is Rs. 125.454883 billion.
    • During 2008-09, the premium amount of general
    Insurance from private sector is 10578.65 crores
    and from public sector is 14924.64 crores.
    • Despite all these achievements of growth, coverage by
    general insurance is still lower in India as compared
    with other countries:
    – The awareness level is law for general insurance products
    – The commission structure was not very attractive for good
    agents to survive on a full time basis
    – The distribution channels were not responsive to customer
    needs
    – Their knowledge was not adequate
    – Customer service needed improvement
    – Personal lines of business did not get adequate attention.
    Government Initiatives
    • The Government of India has taken a number of initiatives to boost the
    insurance industry. Some of them are as follows:
    • National Health Protection Scheme will be 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 will be launched on September 25,
    2018.
    • Over 47.9 million famers were benefitted under Pradhan Mantri Fasal Bima
    Yojana (PMFBY) in 2017-18.
    • The Insurance Regulatory and Development Authority of India (IRDAI) plans
    to issue redesigned initial public offering (IPO) guidelines for insurance
    companies in India, which are to looking to divest equity through the IPO
    route.
    • IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1
    (AT1) bonds that are issued by banks to augment their tier 1 capital, in order
    to expand the pool of eligible investors for the banks.

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