Insurance sector clocks 11% CAGR
As more consumers opt for better health coverage, the insurance industry inIndia continues to enjoy an upswing with private players gaining a tract in the market.
insurance industry inIndia
New Delhi: As more consumers opt for better health coverage, the insurance industry inIndia continues to enjoy an upswing with private players gaining a tract in the market. As per Anand Rathi research report, life insurance sector has clocked in an impressive 11 per cent CAGR over 2011-2020 financial year.
According to the report, owing to factors such as better customer service and innovation products, private players have been gaining market share in life insurance with an increase upto 50 percent in FY2021, in comparison to three percent in FY2014 on an Annual Premium Equivalent (APE) basis. Amongst private insurers, companies such as HDFC Life and SBI Life gained market shares, whereas Max was constant and ICICI-Prudential Life Insurance has lost market share in the last five years. The four private insurers constitute around 60 percent of the life insurance market share.
Even with surge in life insurance in India, its premia as percentage of GDP remains at a low of three per cent. Although LIC continues to dominate the market with widespread operations for the andcontinues to be the market leader, private insurers' market-share, in number of policies sold, has been a steady at 25 percent.
