Trade Analytics
The total market size of the insurance sector in India is projected to touch US$ 350-400 billion by 2020.

Indian Insurance Industry Analysis

Latest update: September, 2016

Shares in non-life insurance market

• Motor insurance accounted for 39.41 per cent of the gross direct   premiums earned in FY16* (up from 41 per cent in FY06), at US$   1.01 billion till September 2015

• At US$ 0.71 billion (till September 2015), the health segment   seized 27.75 per cent share in gross direct premiums

• Private players contribute around 50.2 per cent in the total   revenue generated in non life insurance sector while public   companies contributes around 49.8 per cent share by September   2015


Last Updated: September, 2015

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.

There are 24 life insurance and 28 non-life insurance companies in the Indian market who compete on price and services to attract customers. The industry has been spurred by product innovation, vibrant distribution channels, coupled with targeted publicity and promotional campaigns by the insurers.

Government has approved the ordinance to increase Foreign Direct Investment (FDI) limit in Insurance sector from 26 per cent to 49 per cent which would further help attract investments in the sector.

The Insurance Regulatory and Development Authority (IRDA) recently allowed life insurance companies that have completed 10 years of operations to raise capital through Initial Public Offerings (IPOs). Insurance products are also covered under the ExemptExemptExempt (EEE) method of taxation, which translates to an effective tax benefit of approximately 30 per cent on select investments. In 2015, Government introduced Pradhan Mantri Suraksha Bima Yojna (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY) to bring more people under the insurance cover.

Going forward, increasing life expectancy, favourable savings and greater employment in the private sector is expected to fuel demand for pension plans. Likewise, strong growth in the automotive industry over the next decade would be a key driver for the motor insurance market.

Sectoral Presentation (September, 2015)

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