The total market size of India's insurance sector is projected to touch US$ 350-400 billion by 2020 from US$ 66.4 billion in FY13. The general insurance business in India is currently at Rs 77,000 crore (US$ 12.41 billion) premium per annum industry and is growing at a healthy rate of 17 per cent. The Rs 12,606 crore (US$ 2.03 billion) domestic health insurance business accounts for about a quarter of the total non-life insurance business in the country.
Indian insurance companies spent around Rs 117 billion (US$ 1.88 billion) on IT products and services in 2014, an increase of five per cent from 2013, as per Gartner Inc.Also, insurance companies in the country spent around Rs 4.1 billion (US$ 66.11 million) on mobile devices in 2014, a rise of 35 per cent from 2013.India was ranked 11th among 88 countries in the life insurance business, with a share of 2 per cent, in FY14.
The life insurance premium market expanded at a compound annual growth rate (CAGR) of 15.3 per cent, from US$ 14.5 billion in FY04 to US$ 60.3 billion in FY14. The non-life insurance premium market rose at a CAGR of 16.3 per cent, from US$ 3.4 billion in FY04 to US$ 11.7 billion in FY14.
The share of private sector in the life insurance premiums increased from 4.7 per cent in FY04 to 24.6 per cent in FY14. The market share of private sector companies in the non-life insurance premium market rose from 9.6 per cent in FY03 to 45.3 per cent in FY14. Strong growth in the automotive industry will be a key driver of motor insurance in the years to come.