India is expected to emerge as the 3rd largest market for life insurance in the world by the year 2015 only behind China and Japan, according to a research report by BRIC data.
The data provides a comprehensive analysis of the life insurance market in India giving historical values for the period 2006–2010 and forecast figures for 2011–2015. It covers an exhaustive list of parameters, including written premiums, incurred loss, loss ratio, commissions and expenses, combined ratio, frauds, and crimes, total assets, total investment income, and retentions. It also analyses the various distribution channels used by the life insurance industry.
Indian insurance industry consists of the non-life insurance sector and the life insurance sector. There are 24 insurance companies in the life insurance space which includes LIC and 23 private players. At present, India is in the 12th position when compared to the top markets for life insurance.
The insurance sector in India is expected to grow faster than the country’s overall economic growth, which will open up new business avenues across the industry. The insurance industry is showing early signs of entering a consolidation phase. An improved distribution infrastructure, adoption of new distribution channels, and differentiated product offerings will continue to change the competitive landscape significantly.
The insurance regulator IRDA’s proposal to increase the foreign direct investment limit (FDI) from the present 26 percent to 49 percent coupled with improved efficiency of distribution channels in smaller cities are also among the other factors influencing the growth of the industry.
