Growth Ins Mar2013

Insurance
2013
MARCH
For updated information, please visit www.ibef.org
Insurance
2013
MARCH
Contents
Advantage India Market overview and trends Growth drivers Success stories: Tata AIG Opportunities Useful information
Insurance
Advantage India
2013
MARCH
Strong demand
Attractive opportunities
FY15E
Market size: USD139 billion
Growing interest towards insurance among people; innovative products and distribution channels aiding growth Increasing demand for insurance offshoring
Life insurance in low-income urban areas Health insurance, pension segment Strong growth potential for microinsurance, especially from rural areas
Advantage India
Increasing investments
Policy support

Growing participation of the private sector with market share of 30 per cent in FY11 as against 2 per cent in FY01 The proposed increase in FDI limit to 49 per cent from 26 per cent will further fuel investments
FY11
Market size: USD70 billion
Tax incentives on insurance products Passing of Insurance Bill gives IRDA flexibility to frame regulations Clarity on rules for insurance IPOs which will infuse liquidity into the industry Repeated attempts to make the sector more lucrative for foreign participants
Notes: 2015E - Expected value for 2015; estimate according to BMI, IRDA - Insurance Regulatory and Development Authority, IPO - Initial Public Offering, FDI - Foreign Direct Investment
ADVANTAGE INDIA
Insurance
2013
MARCH
Contents
Insurance
2013
MARCH
Evolution of the Indian insurance sector

2000 onwards 1993-99
1956-1972
Malhotra Committee recommended opening up the insurance sector to private players IRDA, LIC and GIC Acts were passed in 1999, making IRDA the statutory regulatory body for insurance and ending the monopoly of LIC and GIC
Before 1956
The life insurance sector was made up of 154 domestic life insurers, 16 foreign life insurers and 75 provident funds
All life insurance companies were nationalised to form LIC in 1956 to increase penetration and protect policy holders from mismanagement The non-life insurance business was nationalised to form GIC in 1972
Post liberalisation, the insurance industry has recorded significant growth and the number of private players increased to 41 in 2011* Customers are more conscious of the benefits of insurance and its importance for a secure future
Notes: * figure as on September 30, 2011 LIC - Life Insurance Corporation of India GIC - General Insurance Corporation of India IRDA - Insurance Regulatory and Development Authority
MARKET OVERVIEW AND TRENDS
Insurance
2013
MARCH
IRDA governs the Indian insurance sector
Insurance Regulatory and Development Authority (IRDA) Established in 1999 under the IRDA Act Responsible for regulating, promoting and ensuring orderly growth of the insurance and re-insurance business in India
Public (1) Life Insurance (24 players) Private (23)
Ministry of Finance (Government of India)
Insurance Regulatory and Development Authority (IRDA)
Non-Life Insurance (27 players)
Public (6)
Private (21)
Re-insurance (1 player)
Public (1)
Source: IRDA, Aranca Research
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2013
MARCH
Indias lucrative insurance market
India is one of the fastest growing insurance markets in the world India is set to beat* other emerging markets in growth over 2010-12
Projected average real premium growth rate (2010-2012)

10.8% 11.3% 9.2% 7.8% 5.2% 6.6% 4.0% 3.2% 3.1% 2.4% 5.0% 10.0% 15.0%
India Emerging Markets Total Asia World Industrialized Countries 0.0% Life Insurance
Nonlife Insurance
Source: Swiss Re Estimates, Aranca Research

Note: * - estimates by Swiss Re
Insurance
2013
MARCH
Premiums have been growing at a brisk pace
The total insurance market has grown from USD13 billion in FY02 to USD70 billion in FY1 1 Over FY02-1 1, premiums have increased at a CAGR of 20.5 per cent
Gross premiums written in India (USD billion)

80 70 60 50 40 30 20 10 0 10
3
61 55 42 33 46
12
3
14
3
17
4
22
4 5 6 7 7 9
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Non-life Insurance Life insurance
Insurance
2013
MARCH
Life insurance market appears particularly vibrant
The life insurance market has grown from USD10 billion in FY02 to USD61 billion in FY1 1 Over FY02-1 1, life insurance premiums increased at a CAGR of 21.6 per cent
High growth in life insurance premiums (USD billion)

42 39 31 27 19 10 11 13 16 2 3 6 11 13 17 18 33
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Private Public
Insurance
2013
MARCH
Penetration of life insurance has also increased over the years
Penetration rate has increased to 4.4 per cent in FY1 1 from 2.2 per cent in FY02 This rate is above the global average of 4.0 per cent
Higher penetration rates (%) over years

4.6 4.1 4.0 4.0 4.4
2.6 2.2
2.5 2.5
2.3
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
10
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MARCH
Increasing private sector activity in life insurance segment (1/2)
LIC is the largest insurance company and accounted for the market share of 70 per cent in FY1 1 Share of private sector has been increasing over the years; it increased from around 2 per cent in FY03 to around 30 per cent in FY1 1
Greater private sector activity (% share) over the years

100% 80% 60% 98 40% 20% 0% 2 5 9 14 18 26 95 86 82 74 71 70 70
91
29
30
30
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Private sector Public sector
11
Insurance
2013
MARCH
Increasing private sector activity in life insurance segment (2/2)
LIC is still the market leader, with a share of 70 per cent The share of private sector players has increased to 30 per cent from 2 per cent over FY03-1 1
2% 2% 2% 7%
Market share (FY11)

LIC ICICI Prudential SBI Life Bajaj Allianz HDFC Standard Reliance
3% 3% 4% 6%
70%
Max New York Birla Sun Life Others
12
Insurance
2013
MARCH
Non life insurance market has also posted strong growth

Healthy growth in non-life insurance premiums (USD billion)
The non-life insurance market has grown from USD2.6 billion in FY02 to USD12.1 billion in FY12* Over FY02-12*, non-life insurance premiums have increased at a CAGR of 16.7 per cent
6
5 4 2 0.1 3 0.3 3 0.5 3 1 3 1 2 2 3 3 4 4 4
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12* Private Public
Source: IRDA, Aranca Research Note: * - Data for FY12 is provisional
13
Insurance
2013
MARCH
With penetration rates low, there is strong potential for growth
Penetration rate has been in the 0.56-0.70 per cent range over FY02-12 Strong potential for growth apparent from comparison with the global average (3 per cent)
0.7
Penetration rates (%) over the years
0.7
0.7 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
14
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2013
MARCH
Shares in non-life insurance market: Motor insurance leads the way
Motor insurance forms the largest non-life segment with a share of 41 per cent in FY12 Health insurance is the fastest growing segment and made up 23 per cent of the total in FY12
Segment wise breakup (%, FY12*)
9% 22% 5% Fire
Marine
Motor Health 23% 41% Others
Source: IRDA, Aranca Research Note: * - Data for FY12 is provisional
15
Insurance
2013
MARCH
Private sector participation is higher in the non-life segment
The top four players are public corporations and accounted for 52 per cent of the total market in FY12 Private players are not far behind and compete better in the non-life insurance segment
30%
Market Share (FY12*)
15%
New India United National 14% Oriental ICICI Lombard
3% 6% 9% 10% 13%
Bajaj Allianz IFFCO Tokio Others
Source: IRDA, Aranca Research Note - * Data for FY12 is provisional
16
Insurance
2013
MARCH
Notable trends in the insurance sector
Emergence of new distribution channels
New distribution channels like bancassurance, online distribution and NBFCs
have widened the reach and reduced costs

Firms have tied up with local NGOs to target lucrative rural markets
In the life insurance segment, share of the private sector in total premiums
Growing market share of private players
increased to 30 per cent in FY11 from 2 per cent in FY03

In the non-life insurance segment, share of the private sector increased to 41 per
cent from 9.5 per cent cent over the same period
The life insurance sector has witnessed the launch of innovative products such
Launch of Innovative products
as Unit Linked Insurance Plans (ULIPs)

Other traditional products have also been customised to meet specific needs of
Indian consumers
Large insurers are continuing to expand, focusing on cost rationalisation and
Mounting focus on EV over profitability
aligning business models to realise reported embedded value (EV), and generate value from future business rather than focus on present profits
Notes: EV - Embedded Value
17
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Contents
18
Insurance
2013
MARCH
Demand growth for insurance products is set to accelerate (1/2)
Increasing savings drive insurance
Household and financial savings projections for 2015

Household Savings (USD billion) 540 Financial Savings (USD billion) 248
Indias robust economy is expected to sustain the growth in insurance premiums written. Higher personal disposable incomes would result in higher household savings that will be channeled into different financial savings instruments like insurance and pension policies
Notes: Financial savings denote investment inequity and debt instruments
306
141
89
45
2000
2010
2015E
2000
2010
2015E
Source: ICICI, Aranca Research
GROWTH DRIVERS
19
Insurance
2013
MARCH
Demand growth for insurance products is set to accelerate (2/2)
Growing affluent middle class
Indian residents shifting from low- to high-income groups

70 60 50 40 30 20 10 0 2005 Strivers 2010 Seekers 2015 Deprived 2020 Aspirers 2025 Globals
The emergence of an affluent middle class is triggering demand for both life and non-life personal insurance lines A rising number of young professionals are opting for health insurance, motor insurance and unit-linked insurance products (ULIPs)
Source: McKinsey Quarterly, Aranca Research
GROWTH DRIVERS
20
Insurance
2013
MARCH
Favourable policy measures have aided the sector

Insurance products are covered under the EEE (exempt, exempt, exempt)
Tax incentives
method of taxation. This translates to an effective tax benefit of approximately 30 per cent on select investments (including life insurance premiums) every financial year
The proposed Insurance (Amendment) Bill would empower IRDA to introduce
Union Budget 2012-13
forward - looking regulations to promote sustainable growth as it would give IRDA flexibility to frame regulations
The government has also extended Rashtriya Swasthya Bima Yojana (RSBY) to
cover unorganised sector workers in hazardous mining and associated industries like slate and slate pencil, dolomite, mica and asbestos etc. This would help in further growth of the insurance sector
IRDA recently allowed life insurance companies that have completed 10 years of
Life insurance companies allowed to go public

Approval of increase in FDI limit and revival package by the government
operations to raise capital through initial public offerings (IPOs)

Companies will be able to raise capital if they have embedded value of twice
the paid up equity-capital

Increase in FDI limit will help companies raise capital and fund their expansion
plans
Revival package by government will help companies to get faster product
clearances, tax incentives, and ease in investment norms

GROWTH DRIVERS
21
Insurance
2013
MARCH
Major foreign investment in insurance was done in 2000-01 (1/2)

The IRDA Act, 1999 allowed an FDI of up to 26 per cent in the insurance sector on automatic route subject to obtaining license from IRDA Cabinet has approved increase of FDI limit to 49 per cent through the Insurance Laws Amendment Bill (2008) Foreign partner
Prudential plc (26%) Allianz AG (26%) BNP Paribas Assurance (26%) Standard Life (26%) Sun Life Financial Inc (26%) Nippon Life Insurance (26%) New York Life International (26%)
Top Life Insurance Co
Domestic partner
ICICI Bank Ltd (74%) Bajaj Finserv Ltd (74%) SBI (74%) HDFC Bank (72.4%) Aditya Birla Group (74%) Reliance Capital (74%) Max India (74%)
Year
2000 2001 2001 2000 2000 2011 2000
GROWTH DRIVERS
22
Insurance
2013
MARCH
Major foreign investment in insurance was done in 2000-01 (2/2)
Top Life Insurance Co
Foreign partner
Domestic partner
Year
Fairfax Financial Holdings Ltd (26%)
ICICI Bank Ltd (74%)
2001
Allianz AG (26%) Tokio Marine & Nichido Fire Insurance Group (26%)
Bajaj Finserv Ltd (74%)
2001
IFFCO (74%)
2000
Source: Aranca Research
GROWTH DRIVERS
23
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MARCH
Private sector investment in insurance is rising

Investments from the private sector are increasing as they see a huge opportunity in the growing insurance sector of the country
Most of the existing players are tying up with banks to expand their distribution network Few players like HDFC Life are planning to go public; others are selling stakes in order to generate the funds
IndiaFirst Life Insurance

Aviva Life Reliance Life Canara HSBC Life
USD28 million in 2010; plans to invest USD45 million in 2011 USD26 million in 2010 USD58 million in 2011 USD22 million in 2011 Plans to inject USD100 million in 2011 USD71 million in 2010; plans to invest USD445 million through 2016 USD53 million in 2010 Going public by FY14
Source: Towers Watson, Assorted news articles, Aranca Research
Bharti AXA Life

AEGON Religare Life ING Vysya Life HDFC Life
GROWTH DRIVERS
24
Insurance
2013
MARCH
Contents
25
Insurance
Success of SBI Life
2013
MARCH
Total premium collected in (USD billion)

2.7 2.6 2.7 140.0 120.0 2.1 100.0 80.0 1.8 1.5 1.4 1.2 1.0 FY08
Net profit (USD million)
115.8
2.2
76.3 57.5 37.5
60.0 40.0 20.0 0.0 FY09 FY10 FY11 FY12 FY08 FY09 7.1
FY10
FY11
FY12
SBI Life Insurance is a joint venture between Indian banking giant State Bank of India (74 per cent) and France headquartered BNP Paribas Assurance (26 per cent). The company primarily deals in life insurance and pension plans. Currently, the company has 629 branches in India. In FY1 1, it issued around one million insurance policies Between FY08 and FY12, SBI Lifes profits increased at a CAGR of 101 per cent; in FY12 alone annual profits increased 52 per cent to USD1 15.8 million. It was also the major private life insurer in new business premium during FY12
Source: Company website, Aranca Analysis
SUCCESS STORIES: TATA AIG
26
Insurance
2013
MARCH
Success of Tata-AIG microinsurance (1/3)

Objective for establishing microinsurance

Key strategic decision
Fulfilment of corporate social responsibility Increase brand recognition to boost market entry - todays micro clients maybe tomorrows high-premium clients
The microinsurance business model must be separated from the regular insurance business model
Selling microinsurance would require new, alternate distribution mechanisms
To target untapped markets and income groups of rural India
The microinsurance business model
New business unit

A special microinsurance team called the Rural & Social Team is formed
Partnering with NGOs

Identify and partner with credible NGOs operating in the local community NGO suggests good agents for microinsurance policies (microagents)
Forming CRIGs
A group of microagents called a community rural insurance group (CRIG) is formed; it relies on direct marketing of microinsurance policies to local community members
Local operations managed by NGOs

Local operations like collecting and aggregating the premiums, training micro-agents, and helping to distribute benefits looked after by the NGO; this saves administrative costs for Tata-AIG
27
Insurance
2013
MARCH

Rural obligations specified by IRDA exceeded
2002 2003 2004 2005 2006 2007 0 0.05 0.1 Required 0.15 Achieved 7%
Key Takeaway
Partnerships with NGOs have been instrumental in the success of Tata-AIG microinsurance. They have helped select agents and reduced the costs of front-end administrative services. Most crucially, their local know - how and connections have helped build trust for the insurance products in low-income rural areas
11% 9% 10% 12% 14%
14%
18% 16% 21% 18% 19% 0.2 0.25
28
Insurance
2013
MARCH
Robust growth of microinsurance expected

Number of policies Premium- First year (FYP) and Renewals (RYP)
450,000 400,000 350,000
3,500 3,000 2,500
300,000
250,000 200,000
2,000 1,500
1,000 500 0 2008 2009 2010 2011 2012 2008 2009 FYP 2010 2011 RYP 2012
150,000
100,000 50,000 0
29
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Contents
30
Insurance
2013
MARCH
Life insurers: Low-income urban and pension markets (1/2)
Indias life insurance market has grown phenomenally over the past few years; premium for life insurance has grown at about 10 per cent in FY1 1 Insurance density and penetration remain at very low levels compared to developed countries; this points towards strong potential for growth in future Rapid development in Tier II and Tier III cities and growth in new bankable households have led to the emergence of a large insurable class with an appetite for sophisticated life insurance products Business models would need to be customised accordingly, to maintain cost effectiveness as most low-income customers would be small-ticket accounts though huge in numbers
The low-income urban opportunity in India

Urban low-income insurance penetration Household insurance premiums (INR)
40%
4,100
30%
CAGR: 26% 1,300
2007
2012(E)
2007
2012(E)
Source: Asia Insurance Review, Aranca Research Notes: E in the axis for the figures above refer to estimates
OPPORTUNITIES
31
Insurance
2013
MARCH
Life insurers: Low-income urban and pension markets (2/2)
Increasing life expectancy, favourable savings, and greater employment in the private sector will fuel demand for pension plans The opening of the pension market with the passing of the PFRDA Bill 201 1 will make the pension market more conducive for private life insurers
Opportunity in the Indian pension and annuity market

Indian retirement market (INR trillion) Formal pension system penetration (2010)
Proposed new pension bill by government will further provide new opportunities to insurers
There is scope to introduce new-generation pension products such as Variable Annuity and Inflation Indexed Annuity
5 4 4 3 3 2 2 1 1 0
CAGR: 7%
4 13%
Workers covered 2010 2025(E) Workers not covered
Source: McKinsey Quarterly, Aranca Research

Notes: PFRDA - Pension Fund Regulatory and Development Authority
OPPORTUNITIES
32
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2013
MARCH
Non-life insurers: Motor and health insurance markets (1/2)
In FY1 1, non-life insurance has showed growth of 17.5 per cent in terms of new policy issued Despite posting strong growth, non-life insurance sector remains far from tapped, with penetration rates (premium to GDP ratios) remaining low at 0.7 per cent in 201 1 as compared to average of 4.6 per cent in US and 3 per cent in Europe Strong growth in the automotive industry over the next decade will be a key driver of motor insurance Proposed IRDA draft envisages a 10-80 per cent rise in premium rates for the erstwhile loss making third-party motor insurance
Breakup of non-life insurance market in India (2012)
35 30 21.6% Motor insurance
Vehicle production in India* (million units)

32
25
20 15 10 5 0 Car Production Commercial 2010 2020E 2&3 wheelers 2.8 0.7 2.3 9.2 9
41.3%
4.9% 9.5% 22.8%
Health insurance Fire insurance Marine insurance other
Source: *ACMA Estimates, Aranca Research
Notes: E in the axis for the figures above refer to estimates

OPPORTUNITIES
33
Insurance
2013
MARCH
Non-life insurers: Motor and health insurance markets (2/2)
Only 1.5-2 per cent of total healthcare expenditure in India is currently covered by insurance providers From just 2 per cent of the total non-life insurance market in 2007, health insurance now contributes 22.8 per cent Health insurance continues to be one of the most rapidly growing sectors in the Indian insurance industry and reported 18.7 per cent growth in gross premiums in FY12 Absence of government-funded health insurance makes the market attractive for private players IRDA recommended the government to bring down capital requirements for standalone health insurance companies from USD21 million to USD10 million
Health insurance penetration

Health insurance penetration (2010)
14% Health insurance (million policies) CAGR: 8% 220
86%
110
Population covered Population not covered 2005 2015
Source: McKinsey Quarterly, Annual report IRDA,

Aranca Research
OPPORTUNITIES
34
Insurance
2013
MARCH
Microinsurance: Tapping Indias rural wealth

The business environment in Indias microinsurance sector supports healthy growth
IRDA drafted microinsurance guidelines in 2010 which contain a number of favourable measures such as

Macro level (The enabling environment)
Lower threshold limits for agents commissions Rural areas must account for 7 per cent of new life insurance policies in 1st year of firms operation and rise to 20 per cent over the next 10 years
In order to reduce microinsurance distribution costs, IRDA proposed microinsurance schemes to supplement existing government insurance schemes The number of regional rural banks and NGOs operating in the rural sector will aid distribution of microinsurance products
Intermediate level (Support infrastructure)
The annual income growth rate in rural India is expected to increase to

3.6 per cent over 2010-30 from 2.8 per cent over 1990-2010 About 5 million people currently have microinsurance while the entire market is expected to be in the range of 140-300 million
Micro level (Policy holders)
Source: IRDA, McKinsey, Aranca Research
OPPORTUNITIES
35
Insurance
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MARCH
Strong potential in crop insurance
Farmers covered under crop insurance (USD millions)

10.0 8.0 6.0 4.0 2.3 2.0 0.7 0.0 FY08 FY09 FY10 FY11 0.4 9.3 3,500 3,000 2,500 2,000 1,500 1,000 500 0 398
Sum insured (USD million)

3,174
1,093
208 FY09 FY10 FY11
FY08
Crop insurance market in India is the largest in the world and covers around 9 million farmers Between 2008 and 201 1, crop insurance in the country increased at a CAGR of 139 per cent
Source: World Bank, Aranca Research Note: Figures mentioned above are as per Indian agricultural year
OPPORTUNITIES
36
Insurance
2013
MARCH
Contents
37
Insurance
Industry Associations
2013
MARCH
Insurance Regulatory and Development Authority (IRDA) 3rd Floor, Parisrama Bhavan, Basheer Bagh, Hyderabad - 500 004 Phone: 91-040-23381 100 Fax: 91-040-66823334 E-mail: irda@irda.gov.in Life Insurance Council 4th Floor, Jeevan Seva Annexe Bldg. S. V. Road, Santacruz (W), Mumbai - 400054 Phone: 91-22-26103303, 26103306 E-mail: ninad.narwilkar@lifeinscouncil.org General Insurance Council 5th Floor, Royal Insurance Building, 14, Jamshedji TATA Road, Churchgate , Mumbai - 400020 Phone: 91-22-2281751 1, 22817512 Fax: 91-22-22817515 E-mail: gicouncil@gicouncil.in
USEFUL INFORMATION
38
Insurance
Glossary

2013
MARCH
ACMA: Automotive Component Manufacturers Association of India EV: Embedded Value FDI: Foreign Direct Investment FY: Indian financial year (April to March)
So FY12 implies April 201 1 to March 2012
GOI: Government of India INR: Indian Rupee OEM: Original Equipment Manufacturers NATRiP: National Automotive Testing and R&D Infrastructure Project SEZ: Special Economic Zone USD: US Dollar
Conversion rate used: USD1= INR 48
Wherever applicable, numbers have been rounded off to the nearest whole number
USEFUL INFORMATION
39
Insurance
Disclaimer
2013
MARCH
India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this
presentation to ensure that the information is accurate to the best of Aranca and IBEFs knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.
Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation.
Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.
DISCLAIMER
40

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Insurance

For updated information, please visit www.ibef.org

For updated information, please visit www.ibef.org

For updated information, please visit www.ibef.org

For updated information, please visit www.ibef.org

Evolution of the Indian insurance sector

For updated information, please visit www.ibef.org

IRDA governs the Indian insurance sector

Ministry of Finance (Government of India)

Insurance Regulatory and Development Authority (IRDA)

Non-Life Insurance (27 players)

Source: IRDA, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Indias lucrative insurance market

Projected average real premium growth rate (2010-2012)

Source: Swiss Re Estimates, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Premiums have been growing at a brisk pace

Gross premiums written in India (USD billion)

Source: IRDA, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Life insurance market appears particularly vibrant

High growth in life insurance premiums (USD billion)

Source: IRDA, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Penetration of life insurance has also increased over the years

Higher penetration rates (%) over years

Source: IRDA, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Increasing private sector activity in life insurance segment (1/2)

Greater private sector activity (% share) over the years

Source: IRDA, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Increasing private sector activity in life insurance segment (2/2)

Market share (FY11)

Max New York Birla Sun Life Others

Source: IRDA, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Non life insurance market has also posted strong growth

Source: IRDA, Aranca Research Note: * - Data for FY12 is provisional

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

With penetration rates low, there is strong potential for growth

Penetration rates (%) over the years

Source: IRDA, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Shares in non-life insurance market: Motor insurance leads the way

Segment wise breakup (%, FY12*)

Source: IRDA, Aranca Research Note: * - Data for FY12 is provisional

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Private sector participation is higher in the non-life segment

Market Share (FY12*)

New India United National 14% Oriental ICICI Lombard

Bajaj Allianz IFFCO Tokio Others

Source: IRDA, Aranca Research Note - * Data for FY12 is provisional