There are two major market segments in the Indian insurance industry. They are bifurcated based on the purpose and service provided by them i.e. life insurance and non life insurance (can be even termed as general insurance). Life insurance caters to the needs regarding any incident of the death, whereas non-life insurance caters to the needs regarding accidents, health, motor, fire, marine, and so on. There is one more segment in the insurance industry which is termed as re-insurance. GIC is the the sole player for re-insurance in India. The Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body responsible for regulating, promoting, and ensuring orderly growth of the insurance industry. It was incorporated as a statutory body in April 2000 on basis of the recommendations of the Malhotra Committee report under the IRDA Act in 1999
General Insurance Process Benchmarking in India
Although life insurance is a major sector in the insurance industry. General Insurance is an equally booming sector in India. Many foriegn insurance players have shown their interest in the General insurance sector since 2000. Benchmarking report of India Brand Equity Foundation (IBEF) released in September 2019 estimates Indian insurance industry to reach 280 billion US dollars (Approximately 20142500000000 rupees) by 2020.
Following are the noticeable benchmarks in the general insurance sector.
- HDFC Ergo acquired Apollo Munich Health Insurance for rupees 2,600 crores.
- HDFC Ergo started ‘E@Secure’ to offer cyber insurance policies for individuals in the month of September 2018.
- Flipkart, popularly known for B2C retail online business, entered into an insurance business in association with Bajaj Allianz to offer mobile insurance in the month of October 2018.
- The total insurance business in India for the year 2017 was around rupees 434.3 billion through public issues along with ten merger and acquisition deals worth rupees 64,81,18,31,700.
The competition scenario in the general insurance sector changed since the year 2000–2001 with the entry of several private sector players in the respective market.
General insurance is majorly affected on the basis of lines of business, the firm’s market share, the premium growth rate, the underwriting performance and the claims incurred.
Contact AdWISE Assure to know more about further benchmarking tools and reports in the Insurance Industry in India.