Indian insurance sector to become 2 trillion by 2010

Wednesday, 26 December 2007, 12:54 Hrs
Printer Print Email Email
New Delhi: India's thriving insurance sector is all set to grow from 500 billion to 2 trillion ($50.7 billion) by 2010, says the Associated Chambers of Commerce and Industry of India (Assocham).

The main reasons for such a major growth would be the coming of private players and aggressive marketing, the industry chamber said.

The industry, which has seen a compounded annual growth rate of around 175 percent in the last couple of years, is likely to throw up several new avenues of business potential.

The private sector insurance business is likely to achieve a growth rate of 140 percent as against the public sector's growth rate of 35-40 percent.

"On account of intense marketing strategies adopted by private insurance players, the market share of state owned insurance companies have come down to 70 percent in the last four-five years from over 97 percent," said Assocham president Venugopal N. Dhoot.

Assocham also indicated that the role of private players would increase significantly in rural areas as it has enormous growth potential.

Insurers should develop viable and cost-effective distribution channels and build consumer awareness and confidence, it said.
Source: IANS
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..