Insurance Industry in India

Abstract

This chapter starts with an analysis of evolution of insurance in India which is essential because insurance in India commenced with a de-regulated environment (or private firms), moved to a regulated/government owned environment and finally completed a full circle with de-regulation in the year 2000. The next sub-chapter discusses the dynamic market environment for insurance in India, in lieu of the changing regulations, de-tariffing of the general insurance industry and discussions about increase in foreign-equity cap. This sub-chapter examines the environmental factors from the insurer’s point of view, de-tariffing and its consequences, the porter’s 5 forces analysis, the kind of change and trajectory that the industry is expected to undergo, the type of internationalization strategy that a foreign player must pursue. The next sub-chapter details the role of the authority/regulator in shaping and promoting the business environment and enlists the statutory functions of the IRDA (the regulator). The final sub-chapter examines the Indian Market as-is vis-à-vis other markets; the Asian and Global Insurance markets illustrating market value, market value forecast, premium share of the total market across geographies and categories, insurance penetration, insurance density and competitive landscape comparisons.