INSURANCE

INCREASE PENETRATION IN INDIAN MARKET

PRESENTED BY
RISHAB DAS BHOMWICK
INTRODUCTION

 The insurance industry of India consists of 57 insurance companies of which 24 are in life
insurance business and 33 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers. In addition to these, there is sole national re-
insurer, namely, General Insurance Corporation of India (GIC Re). Other stakeholders in
Indian Insurance market include agents (individual and corporate), brokers, surveyors and
third-party administrators servicing health insurance claims.
MARKET SIZE
NON LIFE INSURANCE MARKET IN
INDIA
SWOT ANALYSIS
 INSURANCE INDUSTRY PENETRATION
IN INDIA

 IRDAI data shows that insurance industry’s penetration increased marginally to 3.70% in
FY 2018-19 from 3.69% FY 2017-18. So far, the industry has recorded highest
penetration of 5.2% in FY 2009-10.
 Globally, Indian insurance market stood at 17th in terms of penetration. In fact, insurance
penetration in India was much lower than the global average of 6%. In Taiwan, insurance
penetration was 21%.
GOVERNMENT INTIATIVES
ADVANTAGE INDIA
SUGGESTION

 In India, the society’s perception on life insurance must be changed. For instance,
insurance is sold just as savings but not as protection. Pure Protective Policies or Term
Insurance Policies are gaining momentum through the innovative advertisements by the
private life insurers. Moreover, these term insurance policies are being sold online by
majority of the private life insurers. Thus, the public sector giant LIC of India must
introduce online term insurance policies, which will increase life insurance penetration
and density.
ROAD AHEAD

 The future looks promising for the life insurance industry with several changes in
regulatory framework which will lead to further change in the way the industry conducts
its business and engages with its customers.
 The overall insurance industry is expected to reach US$ 280 billion by 2020. Life
insurance industry in the country is expected grow by 14-15 per cent annually for the next
three to five years.
 Demographic factors such as growing middle class, young insurable population and
growing awareness of the need for protection and retirement planning will support the
growth of Indian life insurance.