The Indian insurance sector is at a verge of a tremendous expansion as more and more people are paying money to avoid any risks to their lives and expensive possessions.
As per a research conducted by RNCOS, “Indian Insurance Industry Forecast (2007-2009)”, the Indian life insurance market is anticipated to reach a value of nearly Rs 1683 Billion in 2009 at an expected CAGR of 20% from the year 2006. In addition to this, the non-life insurance sector of India is forecasted to reach Rs 388 Billion mark by the year 2009 at a CAGR of 27% from 2006.
The major reason for such an exceptional future outlook is the fact that the public sector insurance companies have been re-orienting their operation by remodeling their business segments where they operate, launch new products, tie strategic relations and upgrade their existing IT networks.
Private majors have grabbed 34.72% of the total share in the general insurance segment over the last decade, despite the fact that state-run enterprises have witnessed their business to grow. As far as life insurance is concerned, where state domination was abandoned a couple of years back, private players settled at 18.08%, as per the Minister of State for Finance in India, Pawan Kumar Bansal, as published by Economictimes.
Banks have also been entering the insurance sector taking the form of corporate agencies or under referral arrangements in order to increase the awareness of insurance products. The consumers are benefiting from this as the competition is increasing, thus impelling companies to offer better and easy policies to them.
The expanding car industry and housing market in India has also assisted in promoting the insurance industry. People are becoming more aware of the safety and the risks involved on roads or due to any changes in climate, which are increasing.
Insurance industry is also seriously considering microfinance and insurance. It believes that micro insurance would aim to assist in penetration of insurance to backward or under-developed areas. Micro insurance is considered as a part of the insurance system and offer the specific insurance products at an economical cost, for a relatively lower amount covered, as per officials.
The only shortcoming of the insurance industry is in the medical insurance sector. Around 1.08% of one billion Indians have got medical insurance since 1986 when health insurance was launched in India, as per India's National Insurance Academy published by Xinhua.
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