08 January 2025
The life insurance sector in India is at an "inflection point" and is poised for growth due to several positive factors. According to a financial services company Centrum Broking report, there is a constructive outlook for the life insurance industry, supported by favorable macroeconomic conditions.
The industry is expected to expand because of an increase in the proportion of financial savings within household savings, rising per capita income, a growing working-age population, and the current under-penetration of the market, as noted by Centrum.
India aims to achieve 'Insurance for All' by 2047, and the Insurance Regulatory and Development Authority of India (IRDAI) is committed to this goal. As per the Centrum report dated January 6, private players have significantly increased their market share, with their percentage of individual Annual Premium Equivalent (APE) rising from 56% at the end of 2017-18 to 68% by the end of Q2 2024-25.
The state-owned major, Life Insurance Corporation (LIC), has maintained a 32% market share over the past few quarters. According to Centrum, larger players like SBI Life and HDFC Life have also expanded their market share in recent years. The report states that listed players now command a combined market share of 60% in the private sector.
The life insurance sector in India is at an "inflection point" and is poised for growth due to several positive factors. According to a financial services company Centrum Broking report, there is a constructive outlook for the life insurance industry, supported by favorable macroeconomic conditions.
The industry is expected to expand because of an increase in the proportion of financial savings within household savings, rising per capita income, a growing working-age population, and the current under-penetration of the market, as noted by Centrum.
India aims to achieve 'Insurance for All' by 2047, and the Insurance Regulatory and Development Authority of India (IRDAI) is committed to this goal. As per the Centrum report dated January 6, private players have significantly increased their market share, with their percentage of individual Annual Premium Equivalent (APE) rising from 56% at the end of 2017-18 to 68% by the end of Q2 2024-25.
The state-owned major, Life Insurance Corporation (LIC), has maintained a 32% market share over the past few quarters. According to Centrum, larger players like SBI Life and HDFC Life have also expanded their market share in recent years. The report states that listed players now command a combined market share of 60% in the private sector.
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