Betting big on the domestic life insurance industry, as per the CARE Ratings, the sector is expected to grow around 14-15 per cent per annum.
The growth will originate from various components, including higher demand for retirement items, for example, pension and annuity, alongside low accessibility of government-sponsored standardised savings systems and rising awareness of retirement planning and growing urbanisation.
The country’s life insurance sector represents around 75 per cent of the overall insurance premium. The total premium grew at a CAGR of 10.3 per cent in FY18 to Rs.4.58-lakh crore, from Rs.1.56-lakh crore in FY07. Interestingly, the global life insurance industry developed at a CAGR of 0.8 per cent during the schedule years 2007 to 2017 and came to almost US$ 2.7 trillion in market size (insurance premium volume) in 2017, from US$ 2.5 trillion out of 2007,
Some trends incorporate growing insurance distribution in rural areas, Indian companies extending operation overseas and expanded online selling of insurance products.
In any case, Fraud, high lapse-ratio, and unfavourable changes in macroeconomic elements, for example, trade breakdown, unemployment, and vulnerabilities in the regulatory landscape could be portrayed as key challenges to the industry growth.