1 Industry Profile Overview Insurance sector can be broadly divided into Life

1 industry profile overview insurance sector can be

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Industry Profile Overview: Insurance sector can be broadly divided into Life insurance and Non-life /general insurance. Life insurance covers the risk to life (death of an individual) where as general insurance covers the risk to other assets such as vehicles, property, health, etc. 2
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There are 54 Insurance companies where 24 are Life Insurance and 3 are general insurance in India. Insurance Regulatory and Development Authority (IRDA) was founded in 1999 and it is responsible for regulating, promoting growth of the insurance and re-insurance business in India. Founded in 1956, LIC is the only public Life insurance company in India. It has 52.78% of market share in new premium life insurance segment. At 3.69%, India was ranked 41st in 2017 in terms of insurance penetration. It is an underserved market. Penetration of life insurance stood at 2.76% as compared to the global average of 3.5%. On the other hand, the general insurance penetration stood at 0.93% as compared to the global average of 2.8%. This shows the huge untapped potential in the Indian insurance market. Market Size: Gross premium collected by life insurance companies in India increased from Rs 2.56 trillion in FY12 to Rs 5.78 trillion in FY19. In FY19, premium from new life insurance business increased 10.73 per cent y-o-y to Rs 2.15 trillion. During FY12 to FY18, premium from new business of life insurance companies have increased at a 14.44% CAGR. Premiums for non-life insurers increased at 16. 65% CAGR in the same period. Life Insurance : Life insurance sector has 24 private players now in comparison to only four in FY02. With a 52.78% share in new business market in FY19, LIC, the only public sector life insurer in the country, continues to be the market leader. Share of private sector in life insurance segment has grown from around 2% in FY03 to 33.8% in FY19. Number of lives covered under private life insurance companies reached 36.20 million (up to June 2018), showing y-o-y growth rate of 27.48 %. Non-life Insurance: In FY20 (up to May 2019), gross direct premiums of non-life insurers reached Rs 201.74 billion, 14% y-o- y growth. 3 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 13.4 17.7 18.6 17.6 21.5 27.2 30.1 30.7 26.3 27.3 30.1 33.3 35.3 37.7 41 27.8 Growth in Life Insurance Premium (US$ bn) New Business Premium Renewal Premium FY13 FY14 FY15 FY16 FY17 FY18 FY19* 56 60.7 64 71.8 84.7 94.5 82.8 Gross Premiums Written in India (US$ bn) 37.90% 26.80% 16.60% 6.90% 1.90% 9.90% Non Life Insurance Market in India (FY19) Motor Health Crop Fire Marine Others
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Premiums for non-life insurers increased at 16.65% CAGR during FY12-FY18. The number of policies issued increased from 65.55 million in FY08 to 182.8 million in FY18, at a CAGR of 10.8%. Private players accounted for a 55.7% share in the gross direct premiums generated in non-life insurance sector while rest of the market is captured by public sector companies and specialised insurers. Public sector insurers lead the non-life insurance market in India with New India Assurance, United India Insurance and National Insurance having market shares of 14.07 %, 9.64 % and 8.85%, respectively in FY19.
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  • Spring '14
  • Insurance Sector India

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