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 for the insurance industry.
Premium income as a percentage of gross domestic product (GDP) has increased from 3.3 per cent in 2002–03 to 7.6 per cent in 2008–09. In 2008–09, the insurance industry contributed US$ 15.7 billion to infrastructure funding. 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 CAGR of 24.6 per cent from 2002–03 to 2008–09 to reach US$ 52.6 billion in 2008–09. The number of insurance players has increased from four and eight in life and non-life sectors, respectively, in 2000 to 23 and 22, respectively, as on January 2010. Life Insurance Corporation of India (LIC) is the only public sector life insurance company.
Premium income in life insurance segment has grown at a high compound annual growth rate (CAGR) of 25.8 per cent between 2002–03 and 2008–09. The number of policies issued grew at a CAGR of 12.3 per cent between 2002–03 and 2008–09. Premium income in non-life insurance segment grew at a CAGR of 17.6 per cent between 2002–03 and 2008–09. There are 22 players, out of which 7 are public sector players (including 1 reinsurer) and 15 private sector players, as of January 2010.
Sectoral Presentation (April 2010)
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