Indian insurance sector

Since opening up, the number of participants in the industry has gone up from six insurers (including Life Insurance Corporation of India, four public sector general insurers and General Insurance Corporation as the national reinsurer) in the year 2000 to 48 insurers operating in the life, non-life and reinsurance segments (including specialised insurers, viz., Export Credit Guarantee Corporation and Agriculture Insurance Company). Three of the non-life insurance companies, viz., Star Health and Alliance Insurance Company, Apollo Munich Health Insurance Company and Max Bupa Health Insurance Company function as standalone health insurance companies. Of the twenty two insurance companies which have set up operations in the life segment post opening up of the sector, twenty are in joint venture with foreign partners. Of the seventeen insurers (including health insurers) who have commenced operations in the non-life segment, sixteen are in collaboration with the foreign partners. The three standalone health insurance companies have been set up in collaboration with foreign joint venture partners. Thus, as on date, thirty six insurance companies in the private sector are operating in the country in collaboration with established foreign insurance companies across the globe.

The first year premium, which is a measure of new business secured, underwritten by the life insurers during 2009-10 was `1,09,894 crore as compared to `87,331 crore in 2008-09 registering a growth of 25.84 % against negative growth rate of 6.81 % during 2008-09. In terms of linked and non-linked business during the year 2009-10, 54.53 % of the first year premium was underwritten in the linked segment while 45.47 percent of the business was in non-linked segment (51.13 and 48.87 % respectively in 2008-09). The total premium underwritten by the life insurance sector in 2009-10 was `2,65,450 crore as against `2,21,785 crore in 2008-09 exhibiting a growth of 19.69 % (10.15 % in 2008-09).

The non-life insurers (excluding specialized institutions like ECGC and AIC and the standalone health insurance companies) underwrote premium of `35,816 crore in 2009-10, as against `31,428 crore in 2008-09 registering a growth of 13.44 %. The three health insurance companies underwrote premium of `1,072 crore in 2009-10, twice of their collective premium of `535 crore in 2008-09.

Source: [IRDA]