The domestic insurance industry in India would touch around US$ 60.5 Billion by the year 2010 from existing size of about US$ 10.2 Billion, said, VN Dhoot, President, Assocham in a statement published by The Financial Express on June 22, 2007.
Rural as well as semi urban India would add US$ 35 Billion to the insurance industry in India by the year 2010. US$ 20 Billion would bein terms of Life insurance whereas, US$ 15 Billion would be in terms of Non-life insurance plans. The insurance in the urban sector is expected to touch US$ 25 Billion, out of which US$ 15 Billion would be from Life insurance and the rest from Non-life insurance.
Rising public demand for bigger insurance coverage as well as emerging rural and semi-urban market is driving the industry. The insistent marketing strategies implemented by the private players witness a strong growth in the insurance industry. Smart marketing, Innovative products as well as aggressive distribution have facilitated fledgling private insurance businesses to sign up customers in India sooner than anybody estimated.
The Assocham has recommended that the insurance corporations should concentrate on manufacturing area since it offer enormous opportunities for growth. The insurers should go into tie-ups or understanding with government organizations to make sure the accomplishment of the insurance schemes.
A recent report by RNCOS on "Indian Insurance Industry Forecast (2007-2009)", also estimated an increase in the country’s insurance market in future. As per the report, the Indian life insurance market is expected to reach the value of around Rs 1683 Billion in the year 2009 and the Non-life business is estimated to reach around Rs 388 Billion by the same period.
Report also specified some qualitative factors such as the rate of deregulation of insurance market and the rate of technology implementation, which, if perform according to industry expectations, then the rate of growth of the life insurance market could go higher.
The research report further addresses some other interesting issues and facts that are critical for the success in Indian insurance industry such as the marketing strategies of the players in the insurance industry, opportunities and challenges for the players in this industry, the prospective areas of investments as well as factors that would lead to the growth of Life and Non-life insurance in India.