Indian Insurance Industry Overview & Market Development Analysis

As per the Insurance Regulatory and Development Authority of India (IRDAI), India will be the sixth-largest insurance market within a decade, leapfrogging Germany, Canada, Italy and South Korea.

Advantage India

Robust
Demand

* As per the Insurance Regulatory and Development Authority of India (IRDAI), India will be the sixth-largest insurance market within a decade, leapfrogging Germany, Canada, Italy and South Korea.

*India's life insurance sector showed strong growth in the first quarter of FY25, with first-year premiums surging by 22.91% YoY to Rs. 89,726.7 crore (US$ 10.75 billion), up from Rs. 73,004.87 crore (US$ 8.75 billion) in the first quarter of FY24.

Attractive
Opportunities

*Insurance market in India is expected reach US$ 222 billion by 2026.

*Robotic Process Automation (RPA) and AI will occupy center stage in insurance, driven by newer data channels, better data processing capabilities and advancements in AI algorithms.

*Bots will become mainstream in both the front and back-office to automate policy servicing and claims management for faster and more personalized customer service.

Policy
support

*The government’s flagship initiative for crop insurance, Pradhan Mantri Fasal Bima Yojana (PMFBY), has led to significant growth in the premium income for crop insurance.

*Ayushman Bharat (Pradhan Mantri Jan Arogya Yojana) (AB PMJAY) aims at providing a health cover of 5 lakh per family per year for secondary and tertiary care hospitalization.

*In past eight years, 56.8 crore farmer applications have been enrolled and 23.2 crore farmers received the claim under (AB PMJAY).

Increasing
Investments

*Over the past nine years, the insurance sector has attracted significant foreign direct investment (FDI) amounting to nearly Rs. 54,000 crore (US$ 6.5 billion), driven by the government's progressive relaxation of overseas capital flow regulations.

*The IPO of LIC of India was the largest IPO ever in India and the sixth biggest IPO globally in 2022.

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Last updated: Oct, 2024

ICICI Lombard General Insurance

Currently, a leading private general insurer in India, ICICI Lombard started as a joint venture (JV) between ICICI Bank and Fairfax Financial Holdings in 2001. Over the years, it has grown rapidly along with India’s insurance industry.

Gross Direct Premium Income (GDPI) of the company stood at Rs. 133.13 billion (US$ 1.89 billion) in FY20.

Company Website

SBI Life Insurance

SBI Life Insurance was established in 2000 as a JV between SBI and BNP Paribas Cardiff and has become one of the leading life insurers in the country. The company has a range of life insurance and pension products which include individual and group products to cater to the insurance needs of diverse customer segments.

Gross Written Premium of SBI Life has increased at a 23% y-o-y to reach Rs. 406.3 billion (US$ 5.76 billion) in FY20.

Company Website

HDFC Standard Life Insurance Company

HDFC Standard Life Insurance Company was established in 2000 as a JV between Housing Development Finance Corporation Limited (HDFC Ltd) and Standard Life Aberdeen. It was the first private company to get a license from IRDAI in 2001. As of March 2019, the company was providing 38 individual and 11 group insurance products. After strong period of growth, the company completed its initial public offer (IPO) in 2017. HDFC Life continues to benefit from its presence across the country with 414 branches and additional distribution touchpoints through several partnerships. The partnerships comprise 265 bancassurance partners including NBFCs (Non-Banking Financial Companies), MFIs (Micro Finance Institutions), SFBs (Small Finance Banks), etc. and 39 partnerships within non-traditional ecosystems.

Currently the company has the largest share in new business among private life insurers.

Company Website