The insurance industry of India has 57 insurance companies - , out of which 24 are in the life insurance business, while 34 are non-life insurers. Among the life insurers, Life Insurance Corporation (LIC) is the sole public sector company. There are six public sector insurers in the non-life insurance segment. In addition to these, there is a sole national re-insurer, namely General Insurance Corporation of India. India ranked 10th in life insurance and 14th in non-life insurance industry performance in the world.
According to industry reports , India is the second-largest insurance technology market in Asia-Pacific region , accounting for 35% of the US$ 3.66 billion market. Premiums from India’s life insurance industry is expected to reach Rs. 24 lakh crore (US$ 317.98 billion) by FY31.
Performance for the Year
India’s insurance penetration was pegged at 4.2% in FY21, with life insurance penetration at 3.2% and non-life insurance penetration at 1.0%. India’s overall insurance density stood at US$ 78 in FY21. In the first half of FY22, the life insurance industry recorded a growth rate of 5.8% compared with 0.8% in the same period last year.
The gross first year premium of Life insurers increased by 6.94% in 2021-22 (until January 2022) to Rs. 2,27,188 crore (US$ 29.54 billion).
Between April 2021 and January 2022, gross premiums written off by non-life insurers reached Rs. 227,188.89 crore (US$ 21.24 billion), an increase of 6.94% over the same period in FY21. In January 2022, total premium earned by the non-life insurance segment stood at Rs. 21,957.03 crore (US$ 2.85 billion), as compared to the Rs. 21389.70 crore (US$ 2.77 billion) recorded in January 2021.
The market share of private sector companies in the general and health insurance market increased from 48.03% in FY20 to 49.31% in FY21.
Premiums from new businesses of life insurance firms in India totalled US$ 81.7 billion in FY21, representing a 2.8% increase over FY20.
Six standalone private sector health insurance companies registered a jump of 66.6% in their gross premium at Rs 1,406.64 crore (US$ 191.84 million) in May 2021, as against Rs. 844.13 crore (US$ 115.12 million) earlier.Government Initiatives
In 2022, the Indian government sold a 7% stake in LIC for Rs. 50,000 crore (US$ 6.62 billion). This is the largest initial public offering (IPO) in India that happened in mid-May of 2022.