New Delhi June 21 The size of the insurance business will jump six times to reach $60 billion by 2010 from the current size of around $10 billion, according to industry chamber Assocham.
The projections are based on the feedback the chamber received from its constituents engaged in the insurance business.
The country's life insurance premium as a percentage of GDP is currently estimated at 1.8 per cent against 5.2 per cent in the US, 6.5 per cent in the UK and about eight per cent in South Korea.
The projections are based on the feedback the chamber received from its constituents engaged in the insurance business.
The country's life insurance premium as a percentage of GDP is currently estimated at 1.8 per cent against 5.2 per cent in the US, 6.5 per cent in the UK and about eight per cent in South Korea.
Rural, semi-urban sectors
Rural and semi-urban India will contribute $35 billion to the insurance industry by 2010, including $20 billion by way of life insurance and the rest through non-life insurance schemes.
Urban sector insurance is estimated to reach $25 billion by 2010, life insurance $15 billion and non-life insurance $10 billion, according to the chamber.
Big avenues
The rural market offers tremendous growth opportunities for insurance companies.
The chamber found that there are a total 124 million rural households. Nearly 20 per cent of all farmers in rural India own Kissan Credit cards. The 25 million credit cards used till date offer a huge database and opportunity for insurance companies.
The chamber found that there are a total 124 million rural households. Nearly 20 per cent of all farmers in rural India own Kissan Credit cards. The 25 million credit cards used till date offer a huge database and opportunity for insurance companies.
Source: Bureau, The Hindu Business Line
