Insurance industry is one of the highly under-penetrated financial services in India and is expected to reach US$280bn by 2020, as per the industry reports.
The domestic life insurance industry registered 16.83% yoy growth for new business premium for 9MFY18, generating a revenue of Rs1,51,000cr (US$23.32bn). Premium income of the life insurance segment had increased 14.04% in FY17 to Rs4.18trillion (US$64.92bn).
Gross direct premiums for general and health insurance segment reached Rs1,28,000cr (US$19.88bn) in FY17. While for non-life insurance industry increased by 18.87% yoy in 9MFY18.
The government, in Union Budget 2018, announced mega health insurance cover of up to Rs5lakh to 100mn poor and vulnerable families, with the benefits expected to reach 500mn individuals. Further, allocation to Pradhan Mantri Fasal Bima Yojana is also increased to Rs13,000cr in 2018-19 as against Rs9,000cr in 2017-18.
Three public sector insurance companies—The Oriental Insurance Co. Ltd, National Insurance Co. Ltd and United India Insurance Co. Ltd— will be merged into a single insurance company and listed on the bourses.
LIC continues to be the market leader with around 70% market share followed by ICICI Prudential Life. As of November 2017, life insurance sector had 23 private players.