India Insurance Market Intelligence: 2011 Edition
Indian insurance industry has seen a significant growth over the past few years on account of growing national economy, increasing per capita income, growing consumer awareness about insurance products, and the entry of foreign players in the Indian market bringing in more innovative products. The Indian insurance industry operates through life and non-life segment, with life insurance, motor and health insurance being the major industry drivers. Life insurance segment, representing the largest share in the total insurance industry, is mainly perceived as a convenient method of tax-saving and hence, products like ULIPs are gaining popularity in the country.
Life insurers are now designing new products that bundle life covers with pension plans and health insurance. Life Insurance Corporation of India (LIC) is the largest player within the life insurance business in India. Other major private players include SBI Life, ICICI Prudential, Bajaj Allianz, Reliance Life, HDFC Standard, Birla Sunlife, Max New York and Kotak Mahindra.
During FY10, the gross premium underwritten by non-life insurance industry registered a growth of 13.4% (in local currency) over previous year. The four public-sector general insurers (New India, United India, Oriental and National, spun off from the GIC in 2000) accounted for more than 50% share of the market in FY10. The mandatory motor insurance policy and rising incident rate of road accidents has created the need to buy motor insurance, which is fuelling the growth of the motor insurance business. Indian Insurance industry being an under-penetrated market offers ample growth opportunities. Certain factors, like growing urban population and its per capita income, rising per capita disposable income, aging population, increasing healthcare expenditure and motor vehicle sales, are expected to drive the industry growth.
Life insurers are now designing new products that bundle life covers with pension plans and health insurance. Life Insurance Corporation of India (LIC) is the largest player within the life insurance business in India. Other major private players include SBI Life, ICICI Prudential, Bajaj Allianz, Reliance Life, HDFC Standard, Birla Sunlife, Max New York and Kotak Mahindra.
During FY10, the gross premium underwritten by non-life insurance industry registered a growth of 13.4% (in local currency) over previous year. The four public-sector general insurers (New India, United India, Oriental and National, spun off from the GIC in 2000) accounted for more than 50% share of the market in FY10. The mandatory motor insurance policy and rising incident rate of road accidents has created the need to buy motor insurance, which is fuelling the growth of the motor insurance business. Indian Insurance industry being an under-penetrated market offers ample growth opportunities. Certain factors, like growing urban population and its per capita income, rising per capita disposable income, aging population, increasing healthcare expenditure and motor vehicle sales, are expected to drive the industry growth.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Formation of Life Insurance Corporation of India in 1956
1.1.2 Insurance Sector Went Through Many Regulatory and Structural Reforms
1.1.3 De-tariffication brought major changes in general insurance industry
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Rise in overall premiums in local currency in 2009 compared t 2008
1.2.1.2 Bundling of life cover with pension plans or health insurance to increase demand
1.2.1.3 LIC India recorded highest growth in premium income in Q110
1.2.2 Market Segments
1.2.2.1 Rise in life premiums attributed due to growth in new business premium
1.2.2.2 Recovery of auto sales and health segments resulted growth in non-life premiums
1.2.2.3 ULIPs constituted bulk of life insurance sales in new business premium segment
1.2.3 Market Density & Penetration
1.2.3.1 Rising awareness about insurance led to increase in insurance density in 2009
1.2.3.2 Low insurance penetration compared to other Asian countries depicting large untapped market
1.2.4 Market Share
1.2.4.1 LIC Dominating the Life Segment Since Nationalization
1.2.4.2 Public Sector Dominance in Non-Life Business
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Direct Tax Code and the Insurance Industry
Rationalization of Motor Third Party Pool for Commercial Vehicles
Guidelines on Unit Linked Insurance Products (ULIP) Issued by IRDA
Issues Regarding ULIPs between IRDA and SEBI Settled
IPO Guidelines Likely to Be Disclosed
Non-life Insurers to Form Common TPA Venture for Health Insurance
Insurance Companies to Stop Cashless Benefits
Max Bupa Health Insurance Launched in India
UK’s Legal and General Group Launched Life Venture in India
Max New York Life Insurance Joins LifeCell International
Future Generali Unveiled New Indian Insurance Products
2.2 Market Drivers
Expanding Economy
Motor Market
Population Growth
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Introduction of innovative products and improving distribution channel like bancassurance driving premium growth in future
4.2 Health insurance segment offers huge growth opportunities
4.3 Motor insurance will remain as largest contributor to non-life segment
1.1 Industry Structure
1.1.1 Formation of Life Insurance Corporation of India in 1956
1.1.2 Insurance Sector Went Through Many Regulatory and Structural Reforms
1.1.3 De-tariffication brought major changes in general insurance industry
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Rise in overall premiums in local currency in 2009 compared t 2008
1.2.1.2 Bundling of life cover with pension plans or health insurance to increase demand
1.2.1.3 LIC India recorded highest growth in premium income in Q110
1.2.2 Market Segments
1.2.2.1 Rise in life premiums attributed due to growth in new business premium
1.2.2.2 Recovery of auto sales and health segments resulted growth in non-life premiums
1.2.2.3 ULIPs constituted bulk of life insurance sales in new business premium segment
1.2.3 Market Density & Penetration
1.2.3.1 Rising awareness about insurance led to increase in insurance density in 2009
1.2.3.2 Low insurance penetration compared to other Asian countries depicting large untapped market
1.2.4 Market Share
1.2.4.1 LIC Dominating the Life Segment Since Nationalization
1.2.4.2 Public Sector Dominance in Non-Life Business
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Direct Tax Code and the Insurance Industry
Rationalization of Motor Third Party Pool for Commercial Vehicles
Guidelines on Unit Linked Insurance Products (ULIP) Issued by IRDA
Issues Regarding ULIPs between IRDA and SEBI Settled
IPO Guidelines Likely to Be Disclosed
Non-life Insurers to Form Common TPA Venture for Health Insurance
Insurance Companies to Stop Cashless Benefits
Max Bupa Health Insurance Launched in India
UK’s Legal and General Group Launched Life Venture in India
Max New York Life Insurance Joins LifeCell International
Future Generali Unveiled New Indian Insurance Products
2.2 Market Drivers
Expanding Economy
Motor Market
Population Growth
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Introduction of innovative products and improving distribution channel like bancassurance driving premium growth in future
4.2 Health insurance segment offers huge growth opportunities
4.3 Motor insurance will remain as largest contributor to non-life segment
LIST OF CHARTS:
India Annual Insurance Premiums: FY05-FY10
India Gross Direct Premium Q1 FY10 vs Q1 FY11
India Insurance Premium Share (%) by Segment – 2009
India Insurance Premium by Segment – 2002-2009
India Life Insurance Premium Share (%) by Segment – 2009
India New Business Life Premiums by Type of Premiums: FY10
India Non-life Premium Share (%) by Segment: 2009
India Insurance Density (US$): 2002 – 2009
India Insurance Penetration: 2002 – 2009
India: Major Non-Life Insurer’s Market Share: FY10
India Life Insurance Players Market Share (%): FY10
GDP Growth at Current Prices in India: FY05-FY10
India Automobile Domestic Sales: FY04-FY10
India Health Insurance Premiums: FY03-FY10
Population in India: 2000-2010
Forecast: Insurance Industry of India: FY10-FY14 E
Forecast: Life & Non-Life Insurance Industry: FY10-FY14E
India Annual Insurance Premiums: FY05-FY10
India Gross Direct Premium Q1 FY10 vs Q1 FY11
India Insurance Premium Share (%) by Segment – 2009
India Insurance Premium by Segment – 2002-2009
India Life Insurance Premium Share (%) by Segment – 2009
India New Business Life Premiums by Type of Premiums: FY10
India Non-life Premium Share (%) by Segment: 2009
India Insurance Density (US$): 2002 – 2009
India Insurance Penetration: 2002 – 2009
India: Major Non-Life Insurer’s Market Share: FY10
India Life Insurance Players Market Share (%): FY10
GDP Growth at Current Prices in India: FY05-FY10
India Automobile Domestic Sales: FY04-FY10
India Health Insurance Premiums: FY03-FY10
Population in India: 2000-2010
Forecast: Insurance Industry of India: FY10-FY14 E
Forecast: Life & Non-Life Insurance Industry: FY10-FY14E
LIST OF TABLES:
Key Macroeconomic Indicators: (2009 – 2014F)
Key Macroeconomic Indicators: (2009 – 2014F)
