Economy of India
India became the 10th largest insurance market in the world in 2013, rising from 15th rank in 2011.At a total market size of US$66.4 billion in 2013, it remains small compared to world s major economies, and Indian insurance market accounts for 2 Percent of world s annual insurance business. India s life and non life insurance industry has been growing at double digit growth rates and this growth is expected to continue through 2021.
Indian economy retains about 360 million active life insurance policies, the largest in the world. Of the 52 insurance companies in India, 24 are active in life insurance business. The life insurance industry in the country is projected to increase at double digit compounded annual growth rates through 2019, with targets to reach US$1 trillion annual notional values by 2021.
The industry which reported a growth rate of around 10 percent during the period 1996 97 to 2000 10 has, post opening up the sector, reported average annual growth of 15.85 Percent over the period 2001 02 to 2010 11.citation needed In addition, the specialized insurers Export Credit Guarantee Corporation and Agriculture Insurance Company AIC are offering credit guarantee and corp insurance respectively. AIC, which has initially offering coverage under the National Agriculture Insurance Company NAIS , has now started providing crop insurance cover on commercial line as well.citation needed It has introduced several innovative products such as weather insurance and specific crop related products. The premium underwritten by the non life insurers during 2010 11 was Rs 42,576 crore as against Rs 34,620 crore in 2009 10. The growth was satisfactory, particularly in the view of the across the broad cuts in the tariff rates. The private insurers underwrote premium of Rs 17,424 crore as against rs Rs 13,977 crore in 2009 10. The public sector insurers on the other hand, underwrote a premium of Rs 25,151.8 in 2010 11 as against Rs 20,643.5 crore in 2009 10, i.e. a growth of 21.8 Percent as against 14.5 Percent in 2009 10.citation needed
The Indian insurance business has in the past remained under developed with low levels of insurance penetration. Post liberalization sector 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.