Research firm APAS and trade association ASSOCHAM recently joined hands to conduct a study. The report came out with some interesting observations about the Indian insurance industry. It said that the insurance industry is expected to grow to US$280 billion by the end of fiscal year 2020.
The report has come to this growth expectation based on several factors such as easing of the regulatory regime, rising disposable incomes, presence of global players, increasing insurance penetration and introduction of the Ayushman Bharat health insurance scheme by the central government.
Furthermore, the report also points out that a young population and increasing awareness about protection and planning for retirement will add fuel to the growth of insurance. Growth of insurance is also seen in the statistics, penetration of insurance has increased from 2.71% in 2001 to 3.7% in 2017.
Additionally, the collection of gross premium has also jumped from the ₹3.2 lakh crore that was in 2012 to ₹5 lakh crore in the fiscal year 2018. Overall, the private insurers in the Indian insurance industry are expected to see big growth opportunities. As of now, the private players account for 48% of the general insurance business and just 29% of the life insurance business.
The Ayushman Bharat scheme that is expected to drive insurance growth in the country aims to cover 100 million poor families with a coverage amount of ₹5 lakh per family.
*Source:Asian Insurance Review
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