As per a recent report “Indian Insurance Industry Forecast (2007-2009)” published by RNCOS, it has been found that “Life insurance market in India will likely reach around Rs 1683 Billion by the year 2009. Changing consumer behavior, GDP growth rate, changing socio economic demography, and natural calamities occurring from time to time will remain the key contributors in this growth.”
April 2007, current FY’s first month, saw new businesses expand by 49%, whereas general insurance players witnessed 16% increase during the same month.
Outstanding performance of SBI Life, ICICI Prudential, and LIC helped the Indian life insurance industry in mopping up almost Rs 2,892 crore in April this year, whereas it was Rs 1,996 crore in the same month last year. On the other hand, Reliance Life, ING Vysya, and Bajaj Allianz were amongst those insurers that came across a decline in their premium collection over the review period, as per the data compiled by Insurance Regulatory & Development Authority.
Selling almost 15,89,684 policies during this April, LIC - the largest life insurer in India -witnessed 57% growth in its new premiums that reached to Rs 2,134 crore. LIC grabbed a market share of almost 71.56% during this April. Non-life or general insurance industry saw a growth of 16% during this month, and ICICI Lombard was the second largest player in this segment. Business Standard published this in news on 14 June 2007.
Looking at the current scenario, it can be made out that the four established public-sector players namely, National Insurance, United India, Oriental Insurance, and New India Assurance, may have to face stiff competition from private players like Bajaj Allianz, Reliance General, and ICICI Lombard, as per Business Standard.
According to RNCOS report “Indian Insurance Industry Forecast (2007-2009)”, “Performance of life insurance industry remained better in comparison to non life segment over the five year period spanning 2001-2005. Some qualitative factors, like the deregulation rate of insurance market, and implementation rate of technologies prevailing in the market, need to perform up to the industry expectations in order to improve the growth rate of Indian life insurance market.”
This report provides an objective analysis of all aspects of Indian insurance industry. The issues addressed in this report include: prospective investment areas in Indian life insurance industry, market strategies adopted by key players in this segment, opportunities and challenges present in this industry, and so on.
About RNCOS E-Services Pvt Ltd.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.