India’s insurance industry became the 10th among the largest insurance markets in the world in 2013, rising from 15th in year 2011.With total market size of US$66.4 billion in 2013, Indian insurance market accounts for 2 per cent of world’s annual insurance business, still a very low share. However, the India’s insurance market has been growing constantly at double digit growth rates and expected to keep this momentum till 2021.
India’s life insurance industry stands at the top in the list of largest active insurance policies; with above 360 million active policies. As of now, 24 life insurance companies are operational in India. Country’s life insurance industry is estimated to increase at double digit compounded annual growth rates through 2019, targeting to touch US$1 trillion mark annual notional values by 2021.
Despite low level of insurance penetration in the past, the Indian insurance industry after liberalization in 2000, has succeeded in raising the levels of insurance penetration from 2.3 (life 1.8 and non- life 0.7) in 2000 to 5.1 (life 4.4 and non-life 0.7) in 2010. And the market has been booming gradually. Now, it’s been turning into one of the most favored investment destinations for foreign investors and the domestic as well. Post liberalization, several national and international players competing and increasing operations in the country.
Growing insurance awareness among Indian people, innovative product designs and easy to access distribution channels are sustaining the growth of the insurance sector. Also, the government has opened various liberalization policies for private players. The Indian parliament has recently cleared the path block in the way of raising FDI (foreign direct investment) in the sector that will be seen in greater employment opportunities, improved customer services competitive premiums rates etc. Through passage of the Insurance Laws (Amendment), the Indian government has allowed the foreign investors to raise their share in an Indian insurance joint venture to 49 per cent from earlier 26 per cent.
As per a report released by BCG (Boston Consulting Group), the Indian insurance sector is expected to touch US$ 400 billion in premium income by the end of the year 2020 making India one of the top three life insurance and top 15 non-life insurance markets.
The growth will also boost job opportunities such as – marketing, sales &distribution, actuarial, underwriting, operations and investing departments. The coming decade will be for insurance professionals. Companies with sound financial health offer attractive remuneration and good incentives to retain their qualified employees. To tap this great opportunity, various institutions have started providing certificates, diplomas and degrees programs.