MUMBAI, JUL 9 : Swiss Re’s sigma study reported that strong premium growth seen in both India’s life and non-life sectors is expected to continue in 2007.
The life business saw an exceptionally strong 60% growth in 2006, with aggressive business expansion by the private sector particularly through the use of new channels such as bancassurance sales.
The drive to increase rural penetration by the regulator is expected to further this growth drive in 2007, said the study. A strong 17% growth in non-life premiums was observed in 2006.
‘While the pace of growth is not expected to be maintained in 2007, changes in the tax deduction limits for medical insurance and sustained economic growth are expected to continue to underpin demand,” observed the report. The report further said the world insurance premium growth in 2006 accelerated further, driven by the strong expansion of the life insurance sector.The worldwide premiums written amounted to $3723 billion, an increase of 5% over prior year.
The performance of the insurance industry has further improved in terms of capitalisation and profitability. Real premium growth in the emerging markets of 16% continued to outpace the growth of 4% experienced in the industrialised countries.
Looking at insurance spending, the industrialised countries spent about 9% of the gross domestic product on insurance in 2006, while in the emerging markets this ratio varies from 1.4% in the Middle East and Central Asia to 4.7% in Africa.
The life business saw an exceptionally strong 60% growth in 2006, with aggressive business expansion by the private sector particularly through the use of new channels such as bancassurance sales.
The drive to increase rural penetration by the regulator is expected to further this growth drive in 2007, said the study. A strong 17% growth in non-life premiums was observed in 2006.
‘While the pace of growth is not expected to be maintained in 2007, changes in the tax deduction limits for medical insurance and sustained economic growth are expected to continue to underpin demand,” observed the report. The report further said the world insurance premium growth in 2006 accelerated further, driven by the strong expansion of the life insurance sector.The worldwide premiums written amounted to $3723 billion, an increase of 5% over prior year.
The performance of the insurance industry has further improved in terms of capitalisation and profitability. Real premium growth in the emerging markets of 16% continued to outpace the growth of 4% experienced in the industrialised countries.
Looking at insurance spending, the industrialised countries spent about 9% of the gross domestic product on insurance in 2006, while in the emerging markets this ratio varies from 1.4% in the Middle East and Central Asia to 4.7% in Africa.
Source: Financial Express
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