SWOT Analysis of Insurance Industry in India

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Project Report on Insurance Industry in India

Case Study on Insurance Industry Analysis in India

Key Insights On India's Insurance Sector

Writing in February 2011, actual final data for 2009 is included and estimates for 2010 have been amended in order to take into account of results for H110 that have actually been released by major cross-border insurers in the Asia Pacific region. For the fiscal year ending March 31 2011, we estimate total premiums in India of INR3,613,019mn. This includes non-life premiums of INR424,770mn and life premiums of INR3,188,249mn. This implies a growth rate of 22% for the non-life market and 25% from the life segment. In the year to March 31 2016, the corresponding figures are forecast to be INR6,269,697mn, INR849,710mn and INR5,419,987mn. In terms of the key drivers that underpin our forecasts, we expect non-life penetration to rise from 0.59% to 0.60% and for life density to increase from US$58 per capita to a still low US$111 per capita over our forecast period. This may prove to be conservative, but at this stage we are reluctant to improve our assumptions until a more significant trend of rising penetration emerges. BMI's Insurance Business Environment Rating for India is 55.8.

As was the case in previous quarters, we provide rankings of the major players in each of the two main segments, as reported by the organisation providing the data (which is usually the regulator or trade associations). In India, the four largest state-owned insurance companies, New India, National, United India and Oriental, remain dominant and collectively account for about 60% of the premiums written in the non-life segment. Life Insurance Corporation of India (LIC) accounts for nearly 75% of life premiums. ICICI Prudential and Bajaj Allianz are the next largest players. Over time, we hope to derive insights from observing how market shares change. We emphasise, however, that a decline in the share of gross written premiums is not automatically a bad thing and is often the result of a corporate decision to focus on more profitable business lines.

SWOT Analysis

India Insurance Industry SWOT
Strengths	As a vast emerging economy and a country with more than 1bn people, India is too large to ignore, even if the present barriers to entry are high. A democracy with functioning governance and a regulatory framework familiar to Western corporations, even if it is overloaded with bureaucracy. The economy is growing quite strongly and will experience less of a slowdown than a number of other emerging markets.
Weaknesses	The market is dominated by state-owned insurers and the progress to open up the market is glacial. In the current political climate there is even less support for change. The non-life penetration rate is among the lowest in the world, and even though it is growing it will remain extremely low throughout the forecast period. Life density is low and the market has been growing only slowly.
Opportunities	The long-term potential of an emerging economy with more than 1bn people is unmistakable. While GDP per capita remains low, there is an emerging wealthier group, loosely referred to as 'middle class', and an elite group of extremely wealthy Indians. Various economic forces will probably force the government to relinquish ownership of major insurers.
Threats	The political environment is not conducive to constructive change or sound economic management. The dominance of entrenched players makes it possible that the industry will stagnate. The legal framework, bureaucracy and financial infrastructure worsen the insurance business environment.  If you want Dissertations, Thesis, Case Studies on Insurance Industry in India , Research Proposals, Term Papers, MBA Project Report on Insurance Market, Research Projects, Assignments, Coursework, Essays, Articles, PowerPoint Presentations SWOT Analysis Reports on Insurance Company in India , and Synopsis, than contact Mahasagar Publications, Mumbai, India by calling +91 9819650213 or +91 8081344446  or visit website www.projectspapers.com