Insurance has been one of the main methods of long-term savings of most Indians. The insurance sector caters to this need by not only providing life insurance policies but also savings and endowment schemes.
However, the reach of the industry is still low in India. Annual premiums collected is around 4-5% of India’s GDP. The industry thus has huge growth potential.
As per industry estimates, by the end of the decade, annual first year premium of life insurers is expected to grow 10 times to US$ 300 bn in FY31 from an estimated US$ 30 bn in FY22.
The key driving forces behind the industry are India’s favourable demographics, a growing middle class, rising disposable incomes, and the growing awareness for the need of life insurance.
The industry is regulated by Insurance Regulatory and Development Authority of India (IRDAI). There are around 57 insurance companies in India, most of them in the private sector. They are divided into life and non-life categories.
Among the life insurance companies, Life Insurance Corporation of India (LIC) is the only company in the public sector and is by far the largest.
Among non-life insurance companies, there are six in the public sector. There is also one national public sector re-insurer, General Insurance Corporation of India (GIC Re).
A nascent InsureTech industry is growing rapidly in India due to the start-up boom. As per S&P Global Market Intelligence, India is already the second-largest insurance technology market in the Asia-Pacific region.
The government has taken several measures to support the industry including direct capital infusions in state-run general insurance companies, raising the FDI limit in the industry to 74% and listing LIC on the stock exchanges.
The future looks bring for this economically vital industry in India.
Here’s a list of insurance companies stocks in the Indian market.
Also check out Equitymaster's powerful stock screener to find the top insurance companies in India.
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