Find Insurance and Reinsurance expertise in India
India’s US$55 billion insurance market is the fifth largest in the world and has grown at commanding rates of 25% average annual growth in the period 2003–09. A growing middle-class, rising income per capita, increasing awareness of the benefits of insurance, greater than ever investments and infrastructure spending have all played a part in this rapid growth. From the 1960s to the 1990s the entire insurance industry was nationalised. Gradual deregulation in terms of entry of private sector players and relaxation of premium pricing rules has been instrumental towards unencumbered growth. There are 23 companies in the life sector (1 state-owned and 22 private) and in the non-life sector there are 24 companies (6 state-owned insurers, 17 private insurers and 1 re-insurer) (2010). The life sector – dominated by state-owned Life Insurance Corporation of India (LIC) which has 65% market share – outperforms the non-life sector by at least 5 to 1 in terms of premium revenues. The Insurance Regulatory and Development Authority (IRDA) is the key public institution in the sector.