May 22, 2024 02:22 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Supreme Court rejects batch of pleas seeking review of Article 370 verdict | Pune Porsche crash: 'How can juvenile board give such order', asks Devendra Fadnavis promising strict action | IndiGo plane returns to airport after passenger found standing on overbooked Varanasi flight | Delhi High Court denies bail to Manish Sisodia in all cases linked to alleged excise scam | Police making 'watertight case' against Pune teen over Porsche accident that killed 2
Ayushman Bharat, other factors may help insurance industry grow to USD 280 bn by 2020: ASSOCHAM-APAS study

Ayushman Bharat, other factors may help insurance industry grow to USD 280 bn by 2020: ASSOCHAM-APAS study

| @indiablooms | 10 Sep 2018, 10:03 am

New York, Sept 10 (IBNS): The Indian insurance industry is expected to grow to USD 280 billion by FY 2020 with the government’s flagship Ayushman Bharat – the National Health Protection Mission (AB-NHPM) and other growth drivers like rising disposable incomes, presence of global players and easing of the regulatory regime, helping penetration of the insurance culture in the country, according to an ASSOCHAM-APAS study.
 

Overall insurance penetration in the country reached 3.7 per cent in 2017 from 2.71 per cent in 2001. Gross premium increased from Rs 3.2 trillion (USD 49 billion) in FY12 to reach close to Rs 5 trillion (USD72 billion) in FY18 ,’ jointly conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and APAS.

“Push by the government and the regulator  has helped increase  the penetration of the insurance, as  spread of schemes have also increased. Several factors such as growing middle class, young population and increasing awareness towards the need for protection and retirement planning would enable the growth further,” the latest  study said.

It said, Ayushman Bharat , the ambitious scheme of the  government,  covering 100 million poor and vulnerable families with a cover of Rs 5 lakh per family of tertiary care and hospitalisation would be a game changer for the insurance industry,  as it would have a great multiplier impact on a host of allied sectors and create lakhs of new jobs.

The private sector companies which presently hold close to 48 per cent market share in the general insurance and 29 per cent in the life insurance would see a big growth in the opportunities. The private sector hospitals would also be  major partners in the roll out of the countrywide  scheme for which an initial sum of Rs 12,000 crore has been provided.

An effective implementation of the scheme will  help the entire healthcare and allied sectors like  pharmaceutical, diagnostics, medical devices, data management, insurance hospitality TPAs, quality accreditation and human resource management with the help of information and communication technologies across the value chain.

Taking stock of the present state of play, the ASSOCHAM study with the research firm APAS said that the  domestic life insurance industry registered 11 per cent year-on-year growth for new business premium in 2017-18 generating revenue of USD 30 billion. The premiums for non-life insurance industry increased by 17.5 per cent  year-on-year in FY18.

The government has taken a number of initiatives to boost the insurance industry.The Foreign Direct Investment (FDI) limit has been increased from 26 per cent to  49 per cent , while the regulator, IRDA, has allowed insurers investments up to 10 per cent in additional tier 1 (AT1) bonds that are issued by banks to increase their tier 1 capital.

The medium-term outlook for the life insurance industry remains robust, with solid premium growth forecast over the next five years to 2023.


 

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.