INSURAN
CE
INDUSTRY
INTRODUCTION
The INSURANCE SECTOR is made up of companies that offer
risk management in the form of insurance contracts.
The basic concept of insurance is that one
party, the insurer, will guarantee payment
for an uncertain future event. Meanwhile,
another party, the insured or the
policyholder, pays a smaller premium to
the insurer in exchange for that protection
on that uncertain future occurrence.
CLASSIFICATION
INSURANCE SECTOR IN INDIA
Debasish Panda informed that the
insurance industry of India has become
a Rs. 59 crore (US$ 7.1 million)
industry as of February 2023.
As announced in November 2023, Zurich
Insurance Group is set to acquire a
majority stake in Kotak General
Insurance, marking the first major
foreign investment in India's
insurance sector in eight years.
INSURANCE SECTOR IN INDIA
• The insurance industry of India has 57
insurance companies - 24 are in the life
insurance business, while 34 are non-life
insurers.
• Among the life insurers, Life Insurance
Corporation (LIC) is the sole public
sector company.
• There are six public sector insurers in the
non-life insurance segment.
• In addition to these, there is a sole
national re-insurer, namely General
Insurance Corporation of India (GIC
Re).
www.ibef.org
www.investindia.gov.in
INSURANCE SECTOR IN INDIA
• India is the 10th largest life
Insurance market globally and is
the 4th largest general insurance
market in Asia and the 14th largest
globally.
• Ayushman Bharat PM-JAY is the
largest health assurance
scheme in the world and is funded
by the Government.
Ayushman Bharat Pradhan
Mantri Jan Arogya Yojana is a
national public health insurance
fund of the Government of India
that aims to provide free access to
health insurance coverage for
low income earners in the country.
Roughly, the bottom 50% of the
country qualifies for this scheme.
www.ibef.org
www.investindia.gov.in
INSURANCE SECTOR IN INDIA
**The rise in renewal premium in FY21 is due
the pandemic
**Renewal premium data not available for FY24
www.ibef.org
www.investindia.gov.in
INSURANCE SECTOR IN INDIA
www.ibef.org
www.investindia.gov.in
INSURANCE SECTOR GLOBALLY
• According to the Allianz Global Insurance
report, the global insurance industry grew
by an estimated 7.5% in 2023, clocking the
fastest growth since 2006.
• The Insurances market worldwide is
projected to reach a market size of
US$9.10tn in 2024.
• In this market, Non-Life Insurances
dominates with a projected market volume
of US$5.42tn in the same year.
www.allianz.com
www.statista.com
MAJOR PLAYERS IN INDIA
Company Premium Collections (US $ Billion)
LIC 20.02
SBI Life 3.76
HDFC Life 2.74
ICICI prudential Life 1.58
Company REVENUE (US $ Billion)
LIC 96.05
SBI Life 16.66
HDFC Life 12.68
ICICI prudential Life 10.94
www.ibef.org
companiesmarketcap.com
CHALLENGES
Cybersecurity Threats:
• With the increasing digitization of operations, insurers face
heightened cybersecurity risks. Protecting sensitive
customer data from cyber threats and ensuring compliance
with stringent data protection regulations are paramount
challenges in safeguarding the industry's reputation and
maintaining customer trust.
Climate change & other environmental
factors
• With the world facing unprecedented environmental
changes, insurers find themselves dealing with increased
claims related to natural disasters and environmental
damage.
TRENDS
• The recent pandemic has emphasized the importance of healthcare on the
economy, and health insurance would play a critical role in the effort to
strengthen the healthcare ecosystem.
• Standardized Products: Heightened awareness of pure risk covers and
demand for easy to understand no-frills proposition
• Customer preferences: Customers in India are increasingly seeking
insurance products that offer comprehensive coverage at competitive
prices. There is a growing demand for customizable insurance plans that
cater to individual needs and preferences. Additionally, with the rise of
digitalization, customers are leaning towards insurers that provide seamless
online services and quick claim settlements.
• Open insurance : Open insurance is poised to become the "the next big
thing" in the insurance sector and is a similar idea to open banking. Open
insurance refers to insurance-related personal and non-personal data and is
usually accessed and shared via APIs
THANK YOU
