{"id":21916,"date":"2015-01-12T07:53:05","date_gmt":"2015-01-12T07:53:05","guid":{"rendered":"http:\/\/vskills.in\/certification\/blog\/?p=21916"},"modified":"2024-04-03T13:15:00","modified_gmt":"2024-04-03T07:45:00","slug":"indian-insurance-sector-the-way-forward","status":"publish","type":"post","link":"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/","title":{"rendered":"Indian Insurance Sector &#8211; The Way Forward"},"content":{"rendered":"<p style=\"text-align: center\"><a ref=\"magnificPopup\" href=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/indian-insurance-sector-the-way-forward.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-22080\" alt=\"indian-insurance-sector-the-way-forward\" src=\"http:\/\/vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/indian-insurance-sector-the-way-forward-300x189.jpg\" width=\"300\" height=\"189\" srcset=\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/indian-insurance-sector-the-way-forward-300x189.jpg 300w, https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/indian-insurance-sector-the-way-forward.jpg 400w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p><b>Introduction:<\/b><\/p>\n<p>Since the opening of the sector in 2001, Indian Life insurance industry has gone through two cycles according to KPMG report. First one being characterized by a period of high growth with compound annual growth rate of approximately 31% in new business premium between FY 2001-10 and the second being a flat period with compound annual growth rate of approximately 2% in new business premium between FY 2010-12 but there was increase in market penetration during this period.<\/p>\n<p><b>Insurance Market Size:<\/b><\/p>\n<p>Indian insurance sector with around 52 insurance companies, have 28 companies into non-life insurance business and 24 into life insurance. With about 36 crore policies and with expected compound annual growth rate of 12-15% over next five years, India\u2019s life insurance sector is the biggest in the world according to Insurance Regulatory and Development Authority, India. Prospects of insurance sector are looking bright due to the government\u2019s efforts in that direction. For example, government recently relaxed FDI limit in insurance sector to 49% from 26%, welcoming more capital inflows into insurance sector.<\/p>\n<p>According to IRDA, total market size of India\u2019s insurance sector is projected to reach USD 350-400 billion by 2020 from USD 66 billion in FY2013. A report by Boston Consulting Group and Google India projects insurance sales from online media to increase by 20 folds by 2020 and reach USD 50-65 billion.<\/p>\n<p><b>Government Initiatives:<\/b><\/p>\n<ul>\n<li>Union Cabinet has relaxed the FDI limit insurance sector to 49% from 26%, with the provision that management and control of the companies will be with the Indian partners.<\/li>\n<li>Benefits of accidental insurance cover of INR 1,00,000 has been made available to all those who opened accounts under Pradhan Mantri Jan Dhan Yojana (PMJDY) launched by Prime Minister Sri Narendrs Modi; it would also applicable to those who have opened zero balance accounts before 28<sup>th<\/sup> August 2014.<\/li>\n<li>Indian government is also planning to launch new insurance schemes for farmers to protect their incomes against price and production risks which would increase farmers\u2019 risk taking capacity thus bringing more capital into agriculture sector.<\/li>\n<li>Banks may be made as corporate agents to provide diverse insurance products to customers by tying up with multiple insurers.<\/li>\n<\/ul>\n<p><b>The Way Ahead:<\/b><\/p>\n<p>The country has a favorable demographics, growing awareness, investment friendly government which is constantly working towards framing policies that can attract investments and providing good business environment. Number of policies are expected to reach 75 crore in 2020 from 36 crore presently. Growth of internet penetration in India will also provide multi-distribution channels for insurance to penetrate deeper into the Indian market. Products offered to customers are getting innovated and customized providing wide variety of options to customers. With the increased connectivity through internet and automation of processes claims can be managed efficiently. IRDA has been framing regulatory policies to further increase competitiveness in the market which will benefit the customers.<\/p>\n<p>The insurance market has a huge amount of latent potential, given the fact that the Indian economy is expected to do well in coming decades leading to increase in per capita incomes and awareness among people. The stakeholders should eventually work toward maintain a favorable environment for stable growth, increasing the penetration of insurance to rural and under penetrated areas and increase the contribution to the economy.<\/p>\n<p><a href=\"http:\/\/www.vskills.in\/certification\/accounting-banking-and-finance\">Click here for government certification in Accounting, Banking &amp; Finance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction: Since the opening of the sector in 2001, Indian Life insurance industry has gone through two cycles according to KPMG report. First one being characterized by a period of high growth with compound annual growth rate of approximately 31% in new business premium between FY 2001-10 and the second being a flat period with&#8230;<\/p>\n","protected":false},"author":721,"featured_media":22080,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_joinchat":[],"footnotes":""},"categories":[1519],"tags":[992,897,1302],"class_list":["post-21916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting-banking-and-finance","tag-economic-growth","tag-government-regulation","tag-insurance"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Indian insurance sector- the way forward<\/title>\n<meta name=\"description\" content=\"What is the future of Indian Insurance sector?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Indian insurance sector- the way forward\" \/>\n<meta property=\"og:description\" content=\"What is the future of Indian Insurance sector?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/\" \/>\n<meta property=\"og:site_name\" content=\"Vskills Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/vskills.in\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/vinay.mucharla\" \/>\n<meta property=\"article:published_time\" content=\"2015-01-12T07:53:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-04-03T07:45:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/indian-insurance-sector-the-way-forward.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"400\" \/>\n\t<meta property=\"og:image:height\" content=\"252\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Vinay Mucharla\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Vinay Mucharla\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/\",\"name\":\"Indian insurance sector- the way forward\",\"isPartOf\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/indian-insurance-sector-the-way-forward.jpg\",\"datePublished\":\"2015-01-12T07:53:05+00:00\",\"dateModified\":\"2024-04-03T07:45:00+00:00\",\"author\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/#\/schema\/person\/6f1117be37b8833fe5d81b4920b369e3\"},\"description\":\"What is the future of Indian Insurance sector?\",\"breadcrumb\":{\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/#primaryimage\",\"url\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/indian-insurance-sector-the-way-forward.jpg\",\"contentUrl\":\"https:\/\/www.vskills.in\/certification\/blog\/wp-content\/uploads\/2015\/01\/indian-insurance-sector-the-way-forward.jpg\",\"width\":400,\"height\":252},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.vskills.in\/certification\/blog\/indian-insurance-sector-the-way-forward\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.vskills.in\/certification\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Indian Insurance Sector &#8211; 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