The insurance industry in India has 24 insurance companies in life insurance business and 29 insurance companies in general insurance business. In year 2000, the insurance sector was open for private companies setting an FDI limit to 26% that was further increased to 49% in 2014.
As far as life insurance sector is concerned, Life Insurance Corporation of India (LIC) is the only public sector insurer in India. When it comes to non-life/general insurance business, there are five five private sector insurance companies offering health policies only.
The life insurance industry received a new premium income of Rs 1.38 trillion with 22.5% growth rate, during April 2015 to March 2016. During the same period, general insurance industry registered a growth rate of 12% and received gross direct premium underwritten as Rs 105.25 billion.
The insurance market in India accounts for about 1.5% of total insurance premiums collected worldwide and it is 2% world’s life insurance premium. As far as the insurance industry is concerned, India is the fifth largest market in the world and there is a lot of potential to be harnessed.