INSURANCE

Pointers:

1. The purpose of insurance includes pooling of risks, sharing of losses, and transferring risk.
2. The basic principles of insurance include insurable interest, indemnity, subrogation, contribution,
disclosure, utmost faith, and relevance of proximate cause.
3. The insurance industry in India is divided into two main streams: Life and Non-Life/General.
4. The non-life insurance premium income grew by 17.9% year-over-year in the first quarter of FY24.
5. The Pradhan Mantri Fasal Bima Yojana (PMFBY) has led to significant growth in the premium
income for crop insurance.
6. India's insurance market is expected to be the sixth-largest in the world within a decade.
7. The private sector's market share in the non-life insurance market has increased from 15% in 2004
to 62% in FY23.
8. The life insurance industry is expected to grow at a CAGR of 5.3% between 2019 and 2023.
9. India's insurance penetration was pegged at 4.2% in FY21, with life insurance penetration at 3.2%
and non-life insurance penetration at 1.0%.
10. The government has approved 100% FDI for insurance intermediaries and increased the FDI limit
in the insurance sector to 74% from 49%.
11. The insurance sector in India is expected to witness growth due to factors such as a growing
middle class, a young insurable population, growing awareness of the need for insurance, and
retirement planning opportunities.
12. New distribution channels like bancassurance and online distribution have increased reach and
reduced costs.
13. The use of technology for customization and distribution is a key trend in the insurance industry.

Summary:

The document provides an overview of the insurance industry in India, highlighting its growth,
regulatory changes, and future prospects. The non-life insurance segment has seen strong growth,
driven by factors like the Pradhan Mantri Fasal Bima Yojana and the increasing market share of
private players. The life insurance industry is also expected to grow, with a focus on new distribution
channels and the use of technology for customization and distribution. The document also discusses
the basic principles of insurance and the key factors driving the growth of the insurance sector in
India, such as a growing middle class, a young insurable population, and increasing awareness of the
need for insurance.