Riding on the back of new players and increasing penetration, the insurance sector is expected to cross the Rs 2,00,000-crore mark in business by 2010, according to a study by industry body Assocham. |
At present, the size of the insurance sector is estimated at Rs 50,000 crore, which has seen a compound annual growth rate (CAGR) of around 175 per cent in the last few years, the study named Insurance in the Next Two Years stated. |
The insurance sector, both life and non-life, is likely to grow by over 200 per cent and private insurers are expected to achieve a growth rate of 140 per cent as a result of aggressive marketing technique, it said. The growth of state-owned insurance companies is likely to be 35-40 per cent. |
"On account of intense marketing strategies adopted by private insurance players, the market share of state-owned insurance companies such as GIC, LIC and others has come down to 70 per cent in the last 4-5 years from over 97 per cent," Assocham President Venugopal Dhoot said. |
The study said private insurance companies would further adopt aggressive marketing techniques. Despite the regulation, private players are offering a 35 per cent rate of return to its policyholders against 20 per cent by public-sector insurers. |
This factor is mainly responsible for a hike in the private insurance market share that will grow further, it said. |