The life insurance coverage business in India is about to develop at a compound annual progress fee (CAGR) of 10.3% from Rs 7.0 trillion ($92.3 billion) in 2021 to Rs 11.4 trillion ($150.6 billion) in 2026, when it comes to gross written premiums, forecasts GlobalData, a number one information, and analytics firm.
Anjuli Shrivastava, Insurance Analyst at GlobalData, feedback: “The life insurance industry in India is witnessing a significant post-pandemic growth, supported by growing awareness, increasing demand for group policies, and a favorable regulatory environment. Furthermore, the life insurance industry is set to grow by 10.2% in 2022 driven by the development of digital distribution channels and product innovation.”
During the previous few years, Indian life insurers have witnessed robust progress within the gross sales of group life insurance coverage insurance policies. The Life Insurance Corporation of India (LIC), the biggest life insurer within the nation, with 63.2% market share, recorded 12.7% progress in group life premiums in FY2021 whereas particular person life premiums declined by 2.8%.
Shrivastava provides: “Private insurers are also increasingly offering group life policies as an employee benefit. Such policies, where the risk pool is diverse leading to lower premiums, are cost-effective employee retention measures.”
The authorities’s push to extend life insurance coverage penetration by promoting life merchandise to low-income clients by Pradhan Mantri Jeevan Jyoti Bima Yojana has additionally supported the expansion of life insurance coverage in India.
“Positive regulatory developments have supported product innovation in the life insurance industry. For example, IRDAI relaxed product approval with the expansion of the ‘Use and File’ process to include life products. Earlier, under the ‘File and Use’ policy, life products required regulatory approval before their launch,” says Shrivastava.
Strengthening digital distribution channels has been one other focus space for all times insurers. The COVID-19 pandemic has compelled insurers to develop and improve the digital distribution of their merchandise and achieve direct management of buyer relationships. In March 2022, LIC introduced plans to extend its give attention to digital channels after dropping market share to personal insurers.
Shrivastava concludes: “India’s life insurance industry is forecast to witness double-digit growth over the next five years, twice the global average of 5.5%. The government’s initiatives to increase penetration, positive regulatory developments, and growing awareness will support the uptake of life policies.”
Source: www.financialexpress.com”