There are currently 24 life insurance companies in India, with Life Insurance Corporation being the sole public player. The size of the Indian life insurance industry was ₹6.2 trillion on a total-premium basis in Fiscal 2021, up from ₹5.7 trillion in Fiscal 2020. The industry’s total premium has grown at 11% CAGR in the five years ended Fiscal 2021. CRISIL Research forecasts the industry’s total premium to grow at 14-15% CAGR over the next five years, to reach close to ₹12.4 trillion by Fiscal 2026. (Source: DRHP, CRISIL Report)
India is the Fifth Largest Insurance Market in Asia and Has Exhibited Consistent Growth in Insurance Premiums
Based on life insurance premium, India is the tenth largest life insurance market in the world and the fifth largest in Asia, as per Swiss Re’s sigma No 3/2021 report for July 2021. The size of the Indian life insurance industry was Rs. 6.2 trillion based on total premium in Fiscal 2021, up from Rs. 5.7 trillion in Fiscal 2020. The industry’s total premium has grown at 11% CAGR in the last 5 years ending in Fiscal 2021. New business premiums (NBP) grew at 15% CAGR during Fiscals 2016 to 2021, to approximately Rs. 2.78 trillion. In fact, in Fiscal 2021 – a year impacted by the COVID- 19 pandemic, the NBP of the industry rose by 7.5%. Within the NBP, group business premium grew at approximately 15.4% CAGR from Fiscals 2016 to 2021, whereas individual premium rose approximately 14% CAGR during the same period.
LIC continues to account for around two-thirds of the industry’s premium
LIC accounts for approximately 2/3rd market share in terms of both GWP and NBP in the life insurance industry for Fiscal 2021, driven by its individual agent network especially in rural areas, wide range of products and a sense of trust created by brand LIC among individuals. Private sector players, however, have been gaining market share, supported by their diversified product mix and strong distribution through bancassurance partners. Private players have increased their focus towards individual NBP and increased their market share from 44% in Fiscal 2016 to 50% in Fiscal 2021. In group NBP, LIC continues to dominate the market, accounting for more than 75% of the market share for Fiscal 2021.