Menu

Reinsurance News

India life industry premiums to hit $98.5bn in 2024: GlobalData

12th July 2021 - Author: Matt Sheehan

The life insurance industry in India is projected to grow from INR 5.7 trillion (US $81.4bn) in 2019 to INR 8.0 trillion ($98.5bn) in 2024, in terms of gross written premium (GWP), according to analysts at GlobalData.

india-map-flagGlobalData, which has revised its India forecasts in the aftermath of COVID, believes that the country’s life insurance industry will grow at a compound annual growth rate (CAGR) of 7.0% from 2019 to 2024.

“High number of COVID-19 related deaths in the last one year has increased awareness for life insurance in India,” noted Manisha Varma, Insurance Analyst at GlobalData. “Easing of lockdown restrictions and increased adoption of digital distribution will further support the growth.”

“Digital distribution got much-needed push as insurers are focusing on ensuring uninterrupted sales support and customer service,” Varma explained.

“Insurers are also offering new products with COVID-19 specific benefits to push sales. In January 2021, new business premiums grew by year-on-year 3.7% to INR 213.9bn (US $2.98bn).”

RMS

Positive regulatory developments seen in the last six months are also expected to support life insurance growth in India.

For instance, GlobalData expects that increasing FDI limit in insurance from 49% to 74% will encourage foreign insurers to enter the market and bring additional capital.

Additionally, in April 2021, India’s regulator permitted insurers to invest up to 10% of the outstanding debt instruments in a single Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) issue.

Analysts believe the additional investment options will strengthen the financial position of insurers and encourage them to expand their product offerings.

Varma concluded: “With vaccination drive picking-up pace, the Indian economy is expected to recover over the second half of the year. Increasing consumer awareness along with favorable demographics and regulatory environment will support the demand for life insurance policies.”

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Aon set for further WTW divestments to appease NZ regulators

Re/insurance broker Aon has been instructed by New Zealand regulators to make further divestments if its proposed mega-merger with rival...

Close