Advantage India
Robust
Demand
*India's insurance sector has witnessed significant growth, with the domestic market expanding at CAGR of 17% over the past two decades. It is projected to reach Rs. 19,30,290 crore (US$ 222 billion) by FY26. This growth has been driven by increased awareness, favorable regulatory changes, and greater participation from the private sector.
*The sector recorded a 5.1% year-on-year increase in New Business Premium (NBP) totaling Rs. 3.97 lakh crore (US$ 46.5 billion). Individual NBP grew by 11% to Rs. 1.74 lakh crore (US$ 20.36 billion), driven by the addition of over 11 lakh new agents and ongoing digitization efforts.
Attractive
Opportunities
*Robotic Process Automation (RPA) and AI will occupy center stage in insurance, driven by newer data channels, better data processing capabilities and advancements in AI algorithms.
*Bots will become mainstream in both the front and back-office to automate policy servicing and claims management for faster and more personalized customer service.
*The rise of digital-only insurers and aggregator platforms is opening new avenues for reaching untapped customer segments, particularly millennials and rural populations. Platforms like IRDAI’s "Bima Sugam" are simplifying policy purchase and comparison
*India’s IoT insurance market is projected to reach Rs.1,83,120 crore (US$ 21.4 billion) by 2033, growing at nearly 55% annually.
Policy
Support
*The Indian government has increased the Foreign Direct Investment (FDI) limit in insurance companies from 74% to 100%, enabling complete foreign ownership. This strategic decision is intended to attract additional capital into the long-term, capital-intensive insurance sector, ensuring that insurers invest all collected premiums within the country.
*Insurance cover for 44.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yojana was provided during FY23.
Increasing
Investments
*The IPO of LIC of India was the largest IPO ever in India and the sixth biggest IPO globally in FY22.
*During April–September FY25, the insurance sector attracted over 62% of the Rs.48775 crore (US$ 5.7 billion) FDI into the services sector.
ICICI Lombard General Insurance
Currently, a leading private general insurer in India, ICICI Lombard started as a Joint Venture (JV) between ICICI Bank and Fairfax Financial Holdings in 2001. Over the years, it has grown rapidly along with India’s insurance industry.
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SBI Life Insurance
SBI Life Insurance was established in 2000 as a JV between SBI and BNP Paribas Cardiff and has become one of the leading life insurers in the country. The company has a range of life insurance and pension products which include individual and group products to cater to the insurance needs of diverse customer segments.
Read MoreHDFC Standard Life Insurance Company
HDFC Standard Life Insurance Company was established in 2000 as a JV between Housing Development Finance Corporation Limited (HDFC Ltd) and Standard Life Aberdeen. It was the first private company to get a license from IRDAI in 2001. As of March 2019, the company was providing 38 individual and 11 group insurance products. After strong period of growth, the company completed its initial public offer (IPO) in 2017. HDFC Life continues to benefit from its presence across the country with 414 branches and additional distribution touchpoints through several partnerships. The partnerships comprise 265 bancassurance partners including NBFCs (Non-Banking Financial Companies), MFIs (Micro Finance Institutions), SFBs (Small Finance Banks), etc. and 39 partnerships within non-traditional ecosystems.
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