Commerce Dashboard
Insurance
The insurance industry in India is expected to reach US$ 280 billion by the end of 2020. Life insurance industry in the country is expected to grow 12-15% annually over the next three to five years.

Indian Insurance Industry Analysis

    Last updated on Jan, 5 2021

Post-liberalisation, India’s insurance industry has recorded a significant growth.

Gross premium collected by life insurance companies in India increased from Rs. 2.56 trillion (US$ 39.7 billion) in FY12 to Rs. 7.31 trillion (US$ 94.7 billion) in FY20. During FY12-FY20, premium from new business of life insurance companies in India increased at a 15% CAGR to reach Rs. 2.13 trillion (US$ 37 billion) in FY20.

There are 24 life insurance and 33 non-life insurance companies in the Indian market who compete on price and services to attract customers, whereas, there are two reinsurance companies. The industry has been spurred by product innovation and vibrant distribution channels, coupled with targeted publicity and promotional campaigns by insurers. The market share of private sector companies in the non-life insurance market rose from 15% in FY04 to 56% in FY21 (till April 2020). In life insurance segment, private players had a market share of 31.3% in new business in FY20.

The Government has approved an ordinance to increase Foreign Direct Investment (FDI) limit in the Insurance sector from 26% to 49%, which would further help attract investment in the sector. As per Union Budget 2019-20, 100% FDI was permitted for insurance intermediaries.

Over 53.8 million farmers benefitted under the Pradhan Mantri Fasal Bima Yojana (PMFBY) during FY20. National Health Protection Scheme was announced under Union Budget 2018-19 as part of Ayushman Bharat. The scheme provided insurance cover up to Rs. 500,000 (US$ 7,723) to more than 100 million vulnerable families in India.

Pradhan Mantri Jan Arogya Yojna (PMJAY), the world’s largest social health scheme, is expected to provide coverage to around 50 crore people. Fund of Rs. 6,400 crore (US$ 887 million) has been allocated for FY21, which is thrice that of last year.

Enrolments under the Pradhan Mantri Suraksha Bima Yojana (PMSBY) reached 154.7 million till December 2019 since its launch.

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.

Life insurers reported 14% YoY growth in individual annualised premium equivalent (APE) in October 2020, compared with 4% YoY in September 2020. The scope of IoT in Indian insurance market continues to go beyond telematics and customer risk assessment. Currently, there are 110+ InsurTech start-ups operating in India.

On July 09, 2020, Union Cabinet approved capital infusion of Rs. 12,450 crore (US$ 1.77 billion), including Rs. 2,500 crore (US$ 354.66 million) infused in FY20, in three public sector general insurance companies - Oriental Insurance Company Limited, National Insurance Company Limited (NICL) and United India Insurance Company Limited.

Awareness about crop insurance in India is 38.8%, and still, crop insurance market in India is the largest in the world. The public and private sectors have been actively working towards crop insurance. For instance, in October 2020, the Andhra Pradesh rolled out  free of cost crop insurance scheme for the state farmers while the Reliance General Insurance and SatSure partnered to launch the satellite-based crop monitoring and predictive analytics support for better risk management and to improve efficiency of its crop insurance business operations.

Indian Insurance Industry Report (November, 2020)
Download PDF Download PDF  (Size: 559.56 KB )

Click to access the Insurance Industry Archived Report

Posters

Brand India Pharma

INSURANCE SECTOR INDIA

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

Agri Export Policy - Towards smoother trade, wider global presence

English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

India's emerging social commerce poised for growth
IBEF, Knowledge Centre

Introduction
E-commerce transactions where buyers and sellers interact ...

India’s ‘Green City’ Campaign
IBEF, Knowledge Centre

Overview
India is poised to counter its environmental challenges with i...

Leather and Footwear Industry – Huge potential for growth
Shri P.R. Aqeel Ahmed, Chairman, CLE

The leather and footwear industry is a labour intensive sector, providing employment to 4.42 mi...

Indian automobile sector witnessing ground-breaking trends
IBEF, Knowledge Centre

Overview

The Indian automobile sector Is on its way to recovery after...

National Action Plan to Accelerate India’s Toy Sector
IBEF, Knowledge Centre

Overview

During the August 2020 Mann ki Baat address to the ...

Moving Towards a Knowledge Economy
Dr. Vidya Yeravdekar, Pro Chancellor, Symbiosis International University, Pune, India

Happy to kick start the year with IBEF's first blog on "Higher Education." This i...

ideas Ideas More

Ideas

Zomato: Top Of The Food Chain
Zomato, an Indian start-up is in the business of online food ordering. It initially launched Foodiebay.com in Gurugram in 2008, a website that scanned menus and provided ratings and recommendations on....

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password