BMI's Executive Summary for the India Insurance Report

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This report differs from its predecessors in that it includes BMI's Insurance Business Environment Rating (IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI's Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries.

India's IBER is 52.3. Relative to other countries in Asia, it is at present a relatively unattractive insurance market for foreign insurers. While nobody doubts the long-term potential, the current rating is adversely impacted by low scores for country structure (principally due to the very low GDP per capita) andregulatory framework (principally due to the dominance in both the life and non-life sectors of state owned insurers and the glacial pace of change).

Over the forecast period, we anticipate that non-life premiums will grow by 13% annually in local currency terms and by 16% in US dollar terms. Life premiums are expected to increase by 2% annually in local currency terms and by 5% in US dollar terms. The key drivers of growth in the non-life segment in 2007-2012 are the anticipated rise in nominal GDP from around US$831bn to US$1,404bn and an expected increase in non-life penetration from 0.81% of GDP to 1.00%. The driver of growth in the life segment is the envisaged small rise in life density from US$29.70 per capita in 2007 to US$35.00 per capita in 2012. India's population over the same period is expected to increase from 1,124mn to 1,203mn.

The competitive environment in the life insurance market is absolutely dominated by the state-owned Life Insurance Corporation of India (LIC), which accounts for about 90% of premium income. It is expected that the government's role in the market will eventually be moderated, but there are no immediate signs of change. The non-life sector is dominated by four state-owned insurers. Seven of the top ten insurers are state-owned. ICICI Lombard is the largest of the foreign joint venture groups that are active in India's non-life market. Its market share, in 2004, was measured at 2%.

India is a market said to be 'simply too big to ignore'. This may well be true in the long term, but at present, the insurance sector is relatively small and the barriers to entry are huge.

Contents of the India Insurance Report

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Chapter 1 - The Sector At A Glance

Table: Overview

Key Features Of This Report & Likely Future Changes

Chapter 2 - Latest News

Recent Developments

Chapter 3 - Evolution Since The Mid-1990s

Table: Evolution Of The Insurance Sector (in millions of currency specified)

Evolution

Chapter 4 - Projections And Forecasts

Table: BMI Projections (in millions of currency specified)

Projections And Drivers Of Growth

Chapter 5 - Macroeconomic Outlook

Table: GDP And Population

Chapter 6 - Country Update

Political Risk Alliances Shape The Future

Economic Risk A Services-Led Boom

Business Environment Risk Still Significant

Chapter 7 - Analysis of Competitive Conditions

Country Overview India Non-Life Segment

Table: Non-Life Segment Rankings of Markets

Table: Presence Of Cross-Border Insurers Non-Life

Table: Selected Local Insurers

Country Overview India Life Segment

Table: Life Segment Rankings of Markets

Table: Presence Of Cross-Border Insurers Life

Table: Selected Local Life Insurers

Chapter 8 - Regional Context

Table: Regional Context - Premiums

Table: Regional Context Total Premiums

Chapter 9 - Methodology And Objectives

Introduction

Background

Forecasts

Chapter 10 - Appendix

Table: Latest Estimates / Actual Figures For 2005

Table: Latest Estimates For 2010

Table: Latest Estimates For 2005-2010

Competitive Landscape for Asia Insurance Reports: Sample of
    Companies Ranked

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A cross-border overview of key players and their insurance market share across Asia. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

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BMI's Asian Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports