Life Insurance Industry in India:The life insurance industry in India is rapidly evolving and growing. It recorded the second highest growth in Asia in 2000-01, posting an inflation-adjusted growth rate of 21.3% - more than double the world’s growth rate of 9%. The total insurance market in India is currently valued at US $13 billion with the life insurance sector accounting for more than 81% of the market. The approximately US $10.5 billion Indian life insurance market is expected to grow at 17-22% between 2002-07.
India has become fiercely competitive with the entry of several new private companies, including major multinational insurers, after the deregulation of the sector. It has opened up a range of untapped opportunities for new entrants into the industry, as the potential market for buyers is high since the emerging market in India has a low insurance penetration and high growth rates.Gross premium collection, however, is only two percent of the GDP while nearly 80 percent of the Indian population is without life insurance coverage. In countries such as South Africa and the U.
Gross Domestic Savings (GDS) while they account for over 25 percent of GDS in the U.S., Japan and France. India has traditionally been a high savings oriented country with an enormous middle class that can afford to buy life; health and disability insurance as well as pension plan products. The middle-income segment of the population is estimated at 312 million. The Life Insurance Corporation of India services less than 100 million policies.
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