The Indian insurance sector is set to mark a significant growth in the coming years. The lower level of insurance penetration, favourable demography, initiatives like Pradhan Mantri Jan-Dhan Yojana for enhancing financial inclusion, rising financial literacy along with increase in domestic savings consequent to rise in per capita income are expected to support the growth of insurance sector going forward. Moreover, with liberalization of FDI norms for the sector, many foreign insurance companies have entered into the Indian market to explore the untapped potential of this industry. The favourable regulatory environment in the country is also expected to help in fuelling growth of the insurance sector.
The insurance sector has maintained positive momentum in the recent years. As per the Insurance Regulatory and Development Authority (IRDA) data, the life insurance sector witnessed a significant rise of 11.8% (y-o-y) in premium in FY16 as against 4.4% in the previous fiscal. The number of policies issued also registered a growth of 3.2% in FY16 for life insurance sector as against a decline of 36.6% in FY15. Non-life insurance sector on the other hand reported 13.8% (y-o-y) increase in total direct premium in FY16 as against 9.2% in FY15.
Key Highlights of the report as below:
· Expansion of insurance service to lower income and rural population;
· Surge in foreign capital to accelerate growth of insurance sector;
· IRDA’s regulation to increase digitization in insurance sector;
· Innovations in the insurance sector to increase penetration level;