India's insurance sector may touch a level of Rs 2 lakh crore in the next two years in view of aggressive marketing techniques adopted by private insurance companies, a report said.
"The total insurance business will reach a level of Rs 2 lakh crore in next two years from current level of Rs 500 billion (5,000 crore)," industry body Assocham said in its report `Insurance Sector Futuristic Growth'.
Private insurance business would grow at the rate of 140 per cent in view of aggressive marketing technique adopted by them, against 35-40 per cent of state-owned insurance companies growth rate, it said.
On account of intense marketing strategies adopted by private insurance players, the market share of state-owned insurance companies like GIC, LIC have already come down to 70 per cent in last 4-5 years from over 97 per cent, Assocham President Sajjan Jindal said.
The state owned insurance companies have limited number of policies to offer to their subscribers while in case of private insurance companies, their policy numbers are many more and the premium amount as well as the maturity period is much competitive against those of government insurance firms.
The private sector insurance players have started exploring the rural markets in which until recently the state- run companies had the monopoly, Jindal said.
The chamber has also suggested that insurers strategy should stimulate demand in areas that are currently not served at all. Insurance companies mostly focus on manufacturing sector, though, the services sector is taking a large and growing share of Indias GDP. This offers immense opportunities for expansion opportunities.