GlobalData Research Suggests Indian Life Market is Set to Contract Slightly

The Indian life insurance industry is expected to contract in 2020, declining by 0.9% in 2020 as compared to 8.8% growth recorded in 2019, according to GlobalData, a leading data and analytics company.

GlobalData has revised India’s insurance forecast in the aftermath of the global coronavirus (COVID-19) outbreak. As per the latest data, India’s life insurance market is forecasted to grow at a compound annual growth rate (CAGR) of 5.3% during the forecast period 2019-2023.

Pratyusha Mekala, Insurance Analyst at GlobalData, comments: “Bancassurance and agency channels account for over 90% insurers’ new business premiums in India. Due to the lockdown restrictions, sales through these channels have been severely impaired.

The extended phase of lockdown and its related restrictions will have a negative impact on the new business premiums growth in 2020. As a result of lockdown, life insurers reported decline of 32.6% in new business premium in April 2020 against the same period last year. State-owned market leader Life Insurance Corporation of India registered a decline of 32% in premium from new business while private life insurers have seen decline of 33.3% during the same period.

Mekala concludes: “To offset the adverse impact of offline distribution channels, efforts are being made by insurance companies to accelerate online sales. For instance, Web aggregators such as Policybazaar have reported 20% growth in sales of life insurance products in March 2020. However, growth from online channels is unlikely to prevent contraction in the overall life insurance business.”

 

About alastair walker (3488 Articles)
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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