Life Insurance Market in India to Expand at 11.6% CAGR Till 2023
According to a new Research on Global Markets report, the life insurance market in India is expected to expand at a compound annual growth rate (CAGR) of 11.6% during 2018-2023. India was ranked amongst the top 10 countries and accounted for approximately 2.36% share of the global life insurance market in 2016. The life insurance market in India was valued at INR 4,185 Bn in 2017, mainly driven by around 360 million policies, which is the largest number of policies offered by any insurance sector globally.
According to the report, factors such as better management of claims and regulatory trends, coupled with an increase in disposable income and rising awareness about the benefits of life insurance amongst the working-class population of the country are expected to propel the growth of the market during the forecasted period. Currently, Indian insurance companies are introducing comprehensive custom micro-insurance products for the rural population, which covers not just health but accidents as well. Such initiatives by the market players are expected to widen the customer base, and augur well for the market growth, according to Research On Global Markets.
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However, the implementation of the goods and services tax (GST) is set to make both banking and insurance products expensive in the country. From June 2017, service tax has been replaced by 18% GST in premium receipts and other related documents. This, coupled with lack of financial literacy and understanding of the products and services offered by the insurance companies come across as significant challenges for market growth, according to the report.
Research on Global Markets tracks the performance of some of the key players in the life insurance sector in India, including ICICI Prudential Life Insurance Company Limited, SBI Life Insurance Company Limited, Life Insurance Corporation of India, Aditya Birla Sun Life Insurance Company Limited, Bajaj Allianz Life Insurance Company Limited, HDFC Standard Life Insurance Company Limited, Max Life Insurance Company Limited, PNB MetLife India Insurance Company Limited, Reliance Nippon Life Insurance Company Limited, and Tata AIA Life Insurance Company Limited, among others.
Key highlights of this report:
- Life insurance market size and growth forecast- value-wise (FY 2016-FY 2023e)
- Market share of major players (FY 2017)
- ICICI Prudential Life
- HDFC Life
- Indian life insurance penetration percentage (2012-2016)
- Total premium underwritten by life insurers in India (FY 2016-FY 2017)
- Regular Premium
- Single Premium
- First year Premium
- Renewal Premium
- Qualitative analysis of the drivers and challenges affecting the market
- Player-wise market share - on the basis of total premium collected (FY 2016-FY 2017)
- Private Players
- New policies issued player-wise (FY 2017)
- Private Players
- Total investments by life insurers - instrument-wise (FY 2016-FY 2017)
- Total investments of life insurers - fund-wise (FY 2016-FY 2017)
- Total investments of the insurance sector (FY 2016-FY 2017)
This report has been formulated and designed with the purpose of giving businesses a concise understanding of the demand for life insurance products and services in India to determine the viability of the market, develop strategies based on the drivers, and to help brands identify competition and respond accordingly.