The insurance business is expected to be more competitive and crowded with many new players entering the industry soon.

“There are 20 applications seeking approval for setting up new insurance companies both in life and non-life are currently under process with the Insurance Regulatory and Development Authority of India (IRDAI). The review of applications and the outcome is expected in about six months or a year from now,’‘ a senior official told businessline.

IRDAI has put in place a stringent review process for scrutiny of applications and the final acceptance will be accorded by its board, he added. 

The Head of Underwriting in a large private insurer stated that the primary drivers for insurance business growth are the large number of millennial population, an increase in awareness regarding the need for insurance in the post-Covid period, and a series of regulatory reforms introduced by the regulator in the recent past to promote ease of doing insurance.

Also read: What health Insurance holders must know about alternative treatments

“However, given the nature of the segment, there is a equal need to focus on checks and balances to ensure good corporate governance, especially if the player is with a low capital,’‘ he added. 

Life insurance industry

In the 121st meeting of the board held recently, the regulator granted certificates of registration to Acko Life Insurance Ltd and Credit Access Life Insurance Ltd. As on date, there are 26 life insurers (including the two new approvals which are yet to commence operations) 28 general insurers, five standalone health insurers and one reinsurer, per the regulator’s data.

 Life insurance industry recorded a premium income of ₹6.93-lakh crore during 2021-22 against ₹6.29-lakh crore in the previous financial year, registering growth of 10.16 per cent.  

According to Swiss Re data, India ranks tenth (eleventh in 2020) in global insurance business with a market share of 1.85 per cent in 2021 (1.78 per cent in 2020). Total insurance premium in India increased by 13.46 per cent (7.8 per cent inflation adjusted real growth) in 2021 whereas global total insurance premium increased by 9.04 per cent (3.4 per cent inflation adjusted real growth) during the year. 

 The general insurance industry underwrote total direct premium of ₹2.21-lakh crore in India in the year 2021-22 registering a growth of 11.06 per cent from previous year.