India is among the world's youngest nations, with a median age of 25 years as compared to 43 in Japan and 36 in the US. This, coupled with the increasing disposable income and growing demand for personal financial security indicate a promising future forthe insurance industry.
Premium income as a percentage of GDP has increased from 3.3 per cent in 2002–03 to 7.6 per cent in 2008–09. In 2008–09, the total investments by the insurance industry in infrastructure have grown to US$ 202.9 billion as against US$ 170.5 billion in 2007–08. Investments by life and non-life insurers increased by 20.2 per cent and 4.6 per cent respectively. The life insurance sector employed 0.3 million people directly and 2.9 million people as individual agents in 2008–09.
The total premium of the insurance industry has grown at a compound annual growth rate (CAGR) of 24.6 per cent from 2002–03 to 2008–09 to reach US$ 52.6 billion in 2008–09. As on November 2010, the number of insurance players has increased to 23 and 25 in life and non-life sectors, respectively, from 4 and 8, respectively, in 2000.Life Insurance Corporation of India (LIC) is the only public sector life insurance company.
Premium income grew at a CAGR of 17 per cent between 2002–03 and 2009–2010. In the life insurance segment, share of the private sector in total premiums increased from 2 per cent in 2002–03 to 29.1 per cent in 2008–09. In the non-life insurance segment, share of the private sector in total premiums increased from 9.5 per cent in 2002–03 to 40.9 per cent in 2009–2010. Auto insurance had the largest share in the non-life insurance segment in 2009–2010 (43.5 per cent).Sectoral Presentation (November 2010)
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