The report states that the market size of Indian life insurance industry is expected to touch $111.9 billion in 2015 from $66.5 billion in 2011
According to a research report by BRICdata, India is expected to emerge as the third-largest market for life insurance in the world by 2015, only after China and Japan. At present, India stands 12th among the top markets for life insurance.
The report states that the market size of Indian life insurance industry is expected to touch $111.9 billion in 2015 from $66.5 billion in 2011, registering a CAGR (compounded annual growth rate) of 14.1%. Also, the number of policies sold is expected to increase to 85.21 million in 2015 from 53.23 million in 2010.
The report cities, Insurance Regulatory and Development Authority’s proposal to increase the limit on foreign direct investment from 26% to 49% and improved efficiency of distribution channels in smaller cities as some of the major reasons that would enhance the growth of the industry.
The individual life insurance segment, which comprised 74.8% of the total Indian life insurance industry in 2010, is expected to grow to 79.3% in 2015 on increased investment in individual life insurance products such as term and pension plans.
The unit-linked insurance plans (ULIPs) are expected to be fastest growing product category at CAGR of 21.2% during 2015. The report states that unit-linked pension and annuity products will offer a minimum guaranteed return of 4.5% per annum on maturity.