September 30, 2011
The present report covers overall insurance industry in India, including life and general insurance and their products such as marine, motor and health insurance. It provides the structure and process of the industry. Market density and penetration gives an idea of the chances of further development of the industry. Health insurance is offering opportunities in the insurance sector. Future outlook helps to form new strategies and provide better understanding of upcoming market growth. Over a period of time many developments have been seen in the Indian Insurance sector, now private players are actively participating and their market shares are also growing. http://www.bharatbook.com/detail.asp?id=210212&rt=Insurance-Sector-in-India.html
Globally India is regarded as the fifth largest life insurance market. There are approximately 22 life insurance companies. People perceptions towards insurance products have been changing from only a tax saving instrument to a strong investment tool. A strong demand coming for ULIP products which are new in the market due to reliability and extra benefits provided by private players to differentiate their products and save their piece of market share. During the financial year 2009–2010 in the first 9 months, 50% of the total amount invested by foreign institutional investors (FII) has been injected into equities by the life insurance companies all over India. The Life insurance market has changed from the monopolistic one to highly competitive market with the entry of foreign players. Innovative thinking like introducing new products, capturing new distribution channels and improving service standards have helped them build upon their market share. The new business premium for the life insurance increased at a CAGR of ~% during the year from 2004 to 2008. United linked insurance plans (ULIP’s) accounted for the major part of this growth. The general insurance market is also growing at a slower pace. However, motor and health insurance are the two sub segments of the general insurance segment which have shown the potential and are growing fast. Non life segment witnessed an increase in premium income by 4.66% in the first quarter of 2009 as compared to the same period a year back. ” market research reports ”
This growth can be attributed to other factors such as GDP performance and growth in services in the Q1 – 2009 and well established health segment. In providing healthcare access to individuals across India, Health insurance is expected to play a crucial role. The industry has shown a steady increase with the changes in the regulatory systems & introduction of new Government Health insurance schemes. The largest proportion of the gross premium for all players has come from the Motor insurance. It is been one of the most successful segments of the non life insurance business. As compared to the life insurance sector, the growth of non life insurance sector has been lagging behind because of the limitations in the distribution network across the country, an untapped market which leads to low consumer preference. The present report covers overall insurance industry in India, including life and general insurance and their products such as marine, motor and health insurance. It provides the structure and process of the industry.
Market density and penetration gives an idea of the chances of further development of the industry. Health insurance is offering opportunities in the insurance sector. Future outlook helps to form new strategies and provide better understanding of upcoming market growth. India as a market has unfolded the same follower trend in almost all sectors including insurance sector. India was classified as fast emerging market since 1991. Emerging markets are characterized by low penetration and high growth. Indian insurance market expected to reach 25 billion US$ in not so far 2010 on the assumption of seven per cent annual growth of GDP in real terms. This projection envisages no miracles but extension of the growth rate realized so far. That India has already assumed a break away growth in Insurance as compared to world is evident from performance in past years. India’s development is of tremendous significance for the future of the developing world. To realize India’s development potential, India has to unshackle the human spirit of creativity, idealism, adventure and enterprise that its people possess in abundant measure. Competition has taken on a new meaning in the Indian business lexicon as a result of these radical economic reforms. Until now, India has been a cozy seller’s market in which companies have churned out whatever they wished. The car market is one to be seen to believe the new mindset. It has often been said that next only to China, India has that immense potential, vast entrepreneurial energy and untapped resources which together can radically transform the country in a single generation. Perhaps true, but possible only in a sustained environment of social harmony and political consensus. This is attainable as extreme disorder brings order; and India is in the threshold of this return to order. National aspiration about GDP is best exemplified by the reaction to last year’s performance. Last year, the Indian economy grew at 5.4 per cent, a rate many considered to be dismal notwithstanding the gloom in the OECD world. This same growth would have been considered spectacular not too long ago in our history. After all, it’s much higher than the 3.5 per cent Hindu rate that we got in the first three decades. Clearly, aspirations have changed, and quite rapidly during the 1990s.
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