Insurance premium to touch 1tn by 2015

NEW DELHI, INDIA: General insurance premium earning is likely to grow at 20 percent annually over the next six years and top the Rs.1-trillion (Rs.100,000-crore) mark by 2015, says an industry report released recently.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM), in a joint study with the United India Insurance Co, also said that the massive increase in premium earning from Rs.280 billion (Rs.28,000 crore) currently would be on account of increased awareness.

The study said the earnings from premium grew at compounded annual growth rate (CAGR) of 16.6 percent between 2000-01 and 2007-08.

In 2000-01, the gross premium stood at Rs.96.2 billion (Rs.9,620 crore) and touched Rs.281.38 billion (Rs.28,138 crore) in 2007-08, the study said.

Sajjan Jindal, president, ASSOCHAM, said: 'The huge market largely remains untapped in both rural and urban India as 70 percent of the population is still not touched by insurance companies. High growth in healthcare sector will also open up health insurance potentials substantially.'

However, the study said the size of India's general insurance industry - at Rs.310 billion (Rs.31,000 crore) - was low when compared to that of the US, which is Rs.2.44 trillion (Rs.2.44 lakh crore), or France (Rs.3.7 trillion/Rs.3.7 lakh crore), Germany (Rs.3.85 trillion/Rs.3.85 lakh crore) and even China (Rs.1.32 trillion/Rs.1.32 lakh crore).