Insurance Industry Overview: List of Major Companies
by Yuvi K - December 16, 2023
Insurance Industry Overview – List of Major Companies
The Insurance industry in India has seen a consistent surge in the past few years. From a humble customer base of 40 million in 2001, it shot up to 360 million in 2019. It contributes around 7% of the country’s GDP and serves as an umbrella of financial security for millions of people. The industry is regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and is divided into 3 segments, i.e., Life Insurance, General Insurance and Reinsurance Business.
Life Insurance
Life Insurance provides risk coverage for individuals or families in case of the untimely death of the policyholder. Popular Life Insurance products include Term Insurance Plans, Endowment Plans, Money back plans, Whole Life Insurance Plans, Child Plans, Pension plans, etc.
General Insurance
General Insurance offers financial protection for losses caused due to unforeseen events. A few popular General Insurance products are Motor Insurance, Health Insurance, Travel Insurance, Home Insurance, Personal Accident insurance, Occupational Risk Insurance, etc.
Reinsurance Business
Reinsurance Business is an arrangement between the insurer (an insurance company) and the reinsurer (the one which accepts the risk underwritten by the insurer). Under this business, the reinsurer pays a portion of the commissions and other fees levied by the insurer.
List of Major Insurance Companies in India:
Below is a list of some of the major insurance companies in India, their market share and the products and services offered by them.
| Insurance Company | Market Share (in %) | Products and Services |
|---|---|---|
| Life Insurance Corporation of India (LIC) | 70.40% | Term Insurance, Endowment Plans, Money back plans, Whole Life Insurance Plans, Child Plans, Pension plans, etc. |
| ICICI Prudential Life Insurance | 6.63% | Term Insurance, Endowment Plans, Health Insurance, Pension Plans, Child Plans. |
| HDFC Standard Life Insurance | 5.84% | Term Insurance, Endowment Plans, Health Insurance, Pension plans, Unit Linked insurance plans. |
| SBI Life Insurance | 5.33% | Term Insurance, Endowment Plans, Health Insurance, Pension Plans, Unit Linked Insurance Plans. |
| Bajaj Allianz Life Insurance | 3.87% | Term Insurance, Endowment Plans, Health Insurance, Pension Plans, Unit Linked Insurance Plans. |
| Aditya Birla Sun Life Insurance | 2.42% | Term Insurance, Endowment Plans, Health Insurance, Pension Plans, Unit Linked Insurance Plans. |
Future of Insurance in India
The Insurance Industry is expected to grow at a compound annual growth rate (CAGR) of 15%-20% in the next five years. The Insurance Regulatory and Development Authority of India (IRDAI) has proposed the further liberalization of the sector with more insurers, especially foreign insurers, being allowed to enter the industry. The Government has also taken some crucial steps like introduction of Goods and Services Tax (GST) and the Pradhan Mantri Fasal Bima Yojana (PMFBY) to spur growth and promote insurance penetration.
The life insurance sector, in particular, has seen a boom with the sale of traditional Life Insurance products (Endowment and Money back Plans) growing significantly. More importantly, the increased awareness of health and life insurance has inspired individuals to opt for life protection plans.
Conclusion
The development of the Insurance industry in India has been remarkable but the penetration of insurance is still low compared to global standards. With the recent changes proposed by the Government and its conscious effort to reach out to customers, the Insurance industry is all set for an even bigger surge in the coming years.
In the end, it can be said that the Insurance industry provides financial security and stability to individuals and families and acts as a safeguard against future uncertainties. It is, therefore, essential to have adequate insurance cover to help you meet your financial requirements and look after your loved ones in case of any unforeseen event.
