The Indian insurance industry was liberalized in 2000 with launch of IRDA followed by sector reforms. With the entry of private sector, the number of players has gone to 24 till 2015. There were several product innovations, and competition became intense. The regulator has become a key player in the environment. Over the years, the industry has weathered all trouble and the fundamentals augur well for long term sustainable growth.
In the first decade, there were expansive growth with the sector growing at an impressive 31%. Several regulatory changes were introduced and the market evolved with new customer centric practices in this period.
India continues to be a country of savers though we have witnessed a decline in the household savings rate in the past couple of years. I
New business premiums of life insurance companies saw a 13.8 per cent rise for the period between April 1 and August 31, 2015. Most of the growth has come from private insurers. According to IRDA, life insurers collected first-year premium of Rs. 45,871 crore for the period as compared to Rs. 40,296 crore collected in the corresponding period last year.
Private life insurers saw a growth of 27 per cent and collected new premiums of Rs. 13,434 crore for the period. Strong growth is found across all segments, including individual single, individual non-single, group single and group non-single. LIC, the public sector in life insurance saw a growth of 9.2 per cent collecting new premiums of Rs. 32,436 crore for the period, on the back of healthy growth in group single premium.