Insurance in India

Insurance is a sector that has gone through various changes and has been a booming market. The government allowed private companies to implore insurance. However, the largest insurance in India is the life-insurance company owned by the government with a deep-rooted history.

Life insurance

Insurance in India focuses Life insurance industry, and this is the fifth largest insurance market as per the Life Insurance Council with US$41 billion.

This is growing at a swift pace of 32-34% annually. Life insurance companies in the first five months of 2010 have witnessed 70% rise in premium collection and as per the data released by the IRDA, the new business during April-August 2010 has garnered US $11.73 billion.

However, LIC showed an increase of 88% as premium income in the new business.

Conversely at the same time, ICICI stood at US$576.60 million, private sectors showed 34% increase, SBI acquired the 3rd position with 40% increase reaching to US$531.87 million and HDFC Life showed a robust increase with 54% in the new business.

General Insurance

The IRDA showed general insurance industry with a record of 22.76% growth as gross premium in April-October 2010. It collected US$5.29 billion as gross premium during April-October 2010. The public sectors revealed 21.09 % growth in April-October 2010 and the private recorded 25.19% increase in gross premium.

However, the state-run insurers did a fair job than private counterparts revealing premium of US$916.77 million with New India Insurance in April-October 2010 and the same had US$770.25 million a year before. As per the IRDA reports the private and public sector insurers issued 28.4 million policies in 2009-10 making a total of US$2.31 billion premium collection.

Health Insurance

Insurance in India is prominent, but the health insurance market has emerged as lucrative growth avenue for existing players as well as new entrants. The Indian health insurance market is expected to grow over 25 % during 2009-10 to 2013-14.

As per report of Yes Bank and another industry body in 2009 -November, the sector of medical insurance is expected to reach in the coming three years to US$ 3 billion.

The IRDA report of 2009-10, states that the premium collections of health insurance were US$ 1.75 billion this year in comparison to US$ 893.76 million in the earlier year.

Investment in India

Insurance in India is sure to see enormous growth expansion with ING planning in 2010-11 to invest US$51 million. It is also said that Generali India will open nearly 100 branches to its 91 branches in 2010.

It is also said that the Max Group would invest more than US$100.35 million as business expansion and Max Bupa in the coming 3-4 years is expecting to have equity base as US$156.11 million, as per Damien Marmion, the chief executive-health insurance.

Insurance in India