Insurance Sector in India

Hello Everyone,

I hope you are having a great weekend. 

Today, I'll be covering the Insurance sector in India. In India, the insurance industry is primarily divided into two parts: General Insurance & Life Insurance. 

General Insurance premium market has grown at CAGR rate of 15.4 per cent in the period FY 03 - FY 13, from US$ 3.1 billion to US$ 13 billion. General insurance industry has a total of 28 market players global players like Allianz, AIG, Munich, AXA and home grown players like National Insurance Corp.  and New India Assurance. 

Life Insurance premium market has grown at CAGR rate of 16.6 per cent from US$ 11.5 billion to US$ 53.3 billion during FY 03-13. Life insurance industry has a total of 24 players with global players like AIA, HSBC, AXA, AVIVA, Allianz, Metlife to home grown players like SBI, ICICI , HDFC. 

The total market size of the insurance sector in India was US$ 66.4 billion in FY 13. It is projected to touch US$ 350-400 billion by 2020.

The future of Insurance industry in India looks promising, driven by the country's favorable demographic, greater awareness, supportive government which enacts policies that improve business, customer-centric products, and practices that give businesses the best environment to grow. India's insurable population is anticipated to touch 75 crore in 2020, with life expectancy reaching 74 years. Life insurance is projected to comprise 35 per cent of total savings by the end of this decade, compared to 26 per cent in 2009-10.

References: Media Reports, Press Releases, IRDA Journal, IBEF.org Site

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Indian Financial Industry

Hello Folks,

I hope you are having a good week.

As part of this post, I’ll be covering the financial industry in general. Last year, FY13, India had the savings rate of 30.1 % of GDP. If we do a comparison with 2008 and on-wards, below are the results:

Financial Year	Gross Domestic Savings Rate ( Overall as % of GDP )
FY 08	32 %
FY 09	33.7 %
FY 10	33.7 %
FY 11	31.3 %
FY 12	30.1 %

 

So as you can see the savings rate has been falling for some years and it is expected to fall as the young population of India starts consuming services and saves less each month.

But, we as young Indians get good financial advice from our elders, parents, grand-parents, friends and extended family, about how to save for the rainy days and this advice tends to be true most of the time.

To get the point in this post, if you are earning by the way of a job or a business, Indian financial industry provides you the following financial services:

1. Personal Financial services like Savings Account, Fixed Deposits, National Savings Funds (NSF), Post Office Saving Schemes etc.
2. Insurance Services like Life Insurance Products, Health Insurance Products, Home Insurance Products, Non-Life Insurance products for businesses, Auto Insurance etc.
3. Pensions Services like the New Pension Scheme, Personal Pension products from Private companies etc.
4. Wealth Management services which includes managing personal wealth, wealth growth through investments in products like Equity Markets, Debit Markets, Real Estate & Other avenues.

The above listed points caters to almost majority of the Indian financial industry and as part of this blog series, I’ll be covering each of the sections with individual posts so that you as a reader can have a better understanding of the financial services and options available to you for growing your wealth.

Regards,

DD

 

 

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First Post of Financial Knowledge Sharing

Hello Folks,

I hope you are having a great week.

As part of my first blog on financial industry, especially personal finances, I would like to thank you for visiting my blog.

This blog will be dedicated to sharing the knowledge on various financial instruments that help you manage your wealth, allows you to provide cover for yourself and your family in times of needs, provides you with information on various insurance products and finally help you plan for your retirement.

This blog is dedicated to Indians as majority of Indians still lack basic financial planning, insurance coverage and pension coverage.

Thank you again for visiting my blog. I’ll keep on posting on a weekly basis.

Regards,

DD

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