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India the next major market for insurance biz at $60 B
By agencies
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Wednesday, 02 August 2006, 19:30 IST
NEW YORK: An industry lobby group, New York, reported, that India's insurance business is expected to grow six-fold to $60 billion by 2010 mainly by focusing on the rural population, which has been an untouched market till now.
The Associated Chambers of Commerce and Industry (ASSOCHAM) said, come 2010 India would be able to generate $35 billion by way of insurance premium, just concentrating on the untapped rural and semi-urban markets.
"The rural market offers tremendous growth opportunities for insurance companies and insurers should develop viable and cost-effective distribution channels," said ASSOCHAM President Anil K. Agarwal.
As per the report of the ASSOCHAM, $20 billion is could be expected from life insurance and the remainder through insurance of vehicles, property, livestock, crop and farm equipment, which is an achievable proposition.
The lobby group suggested another area, which offered huge potential as well. They feel insurers should target the country's 25 million farm credit card holders to sell their policies. The future for the insurance business is currently a promising market and would attract major players, creating a buzz in the economy.