Insurance penetration in the country reached 3.7 per cent in 2017 from 2.71 per cent in 2001.
New Delhi: The Indian insurance industry is expected to grow to USD 280 billion by 2019-20 aided by the government's flagship Ayushman Bharat and increasing awareness about need for protection, according to an Assocham-APAS study.
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 lakh crore (USD 49 billion) in 2011-12 to reach Rs 5 lakh crore (USD72 billion) in 2017-18, it said.
"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 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 will 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 Indian insurance industry is expected to grow to USD 280 billion by FY2020 with the government's flagship Ayushman Bharat 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," the study noted.
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 will see a big growth in the opportunities. The medium-term outlook for the life insurance industry remains robust, with solid premium growth forecast over the next five years to 2023, it said.
"An effective implementation of the (Ayushman Bharat) 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," said the study conducted by industry chamber Assocham and research firm APAS.