The Insurance market in India is one of the most lucrative in the world. Here we bring a few quick facts which everyone should know about the insurance market in India.
The present market size of overall insurance in around USD 72 Billion, with just a 2% penetration. It has been growing with a CAGR of 16% plus. This is destined to take the market to a level of $ 350- 400 Billion level by 2020. Recent government’s push of relaxing the FDI limits in Insurance is also bound to push this further, and it can be expected that it will reach a $ 1 Trillion levels soon.
Further on, the growth rate of Non life is about 16.3% and is the fastest in the world, attracting a lot of Non-life focused insurance players from the world over. There are already 28 Non-life insurance entities in India. This is primarily because of the fact that the penetration has been steadily rising, and the average premium rates also are on the rise. It is estimated that there is at least a potential to grown 100 times overall in non life.
Motor Insurance has been the highest contributor in Non life, with the gross written premium increasing at a astonishing 26%. The overall effect has been that Insurance companies are interested in exploring better mechanisms to reach a wider audience , and they are willing to invest in IT for it.
This has led to the rapid growth of Insurance intermediaries, like websites and online brokers, who excel is providing low cost options to both Insurers as well as customers. It is generally perceived that the rise of online insurance will not only reduce costs, but also bring about new financial products focused on this low cost acquisition channels.
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