COMPARATIVE ANALYSIS

 The insurance industry is critical for any country’s economic development. A well-developed insurance
sector boosts risk-taking in the economy, as it provides some security in the event of an unforeseen, loss-
causing incident. It also provides much-needed support to family members in the case of loss of life or
health. Since the assets under management of insurance companies represent long-term capital, they also
act as a pool in which to invest in long-term projects such as infrastructure development.

 The insurance industry in India has also grown along with the country’s economy. Several insurance
companies in the country are expanding their operations, across both the public and private sector.
 There are currently 57 insurance companies in India, of which 46 are from the private sector. There are 24 life
insurance and 33 non-life insurance companies in India. The major names in the sector are:
Life insurance:
 Life Insurance Corporation (LIC)
HDFC Standard Life
SBI Life Insurance
ICICI Prudential Life Insurance
Non-life insurance:
 New India Assurance
United India Assurance
National Insurance Company
ICICI Lombard
Oriental Insurance Company
 According to IRDAI, at 3.69 per cent, India was ranked 41st in 2017 in terms of insurance penetration
with life insurance penetration 2.76 per cent and non-life insurance penetration at 0.93 per cent.
 Over the years, share of private sector in life insurance segment has grown from around 2 per cent in
FY03 to 33.51 per cent in FY19 (up to December 2018).
 As of FY19 (up to November 2018), life
insurance sector had 23 private players in
comparison to only four in FY02.
 With a 66.49 per cent share new business
market share in FY19 (up to December 2018),
Life Insurance Corporation of India, the only
public sector life insurer in the country,
continues to be the market leader
 As of December 2018, in the private sector,
HDFC Standard Life Insurance is leading with
a share of 7.02 per cent in new business
premium, followed by SBI Life Insurance at
6.69 per cent and ICICI Prudential Life
Insurance at 4.82 per cent
 There were 33 non-life insurers in India in
FY18.
 Public sector insurers lead the non-life
insurance market in India with New India
Assurance, United India Insurance and National
insurance Company having market shares of
15.1 per cent, 11.5 per cent and 10.9 per cent,
respectively in FY18.
 In the private sector, ICICI-Lombard was the
leader in FY18 with a market share of 8.2 per
cent, followed by Bajaj Allianz at 6.3 per cent.
 The public sector companies accounted for a
cumulative share of about 53.39 per cent of the
total Gross Direct Premium in the non-life
insurance segment FY18.
 India’s robust economy is expected to
sustain the growth in insurance
premiums written.
 Higher personal disposable incomes
would result in higher household
savings that will be channeled into
different financial savings instruments
like insurance and pension policies.
 Per capita GDP of India is expected to
reach US$ 3,274 in 2023 from US$
2,135 in 2018.