CII recommends a roadmap to enable Life Insurance Industry to grow at 12% CAGR and General Insurance Industry to grow at 22% CAGR over the next decade

Indian insurance industry is currently the 16th largest market and expected to be one of the top 10 markets by 2025: CII

March 24, 2015 8:41 IST | capital market
The last few years have been challenging for the industry with declining growth in life insurance premiums and significant challenges in non-life profitability. This was driven by a combination of macro-economic factors and structural challenges inherent in the insurance industry.

However, an improving economy with potential regulatory reforms and concerted action by the industry players can usher in an era of significant growth as well as value creation. Overall, the insurance industry in India (across life, general and health) can be as large as USD 250 billion.

CII report on India Insurance Vision 2025: Building a USD 250 billion customer centric and value creating industry defines the long-term vision and aspiration for the insurance industry. Done in partnership with McKinsey & Company it contains a fact-based view on the current state of the industry, its evolution over a period of time, key trends that will shape the industry in the next decade and therefore, the potential evolution.

The Insurance industry in India is at an inflexion point in its development. With Government's reformative drive and resolve, the industry can jointly achieve the vision of building a customer centric and value-creating industry over the next decade. The inclusive growth will enable India to become a global top 10 insurance market with a total Gross Written Premium (GWP) size of USD 250 Billion. However, to unlock this true potential, there needs to be a concerted action from all stakeholders., said Chandrajit Banerjee, Director General, CII.

The report recommends a inclusive, progressive growth for the industry over the next decade. This will enable life insurance industry to grow at 12% CAGR over next decade to reach USD 160 billion - USD 175 billion and general insurance to grow at 22% CAGR to reach a GWP of USD 80 billion.

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