Indian Insurance Market and Technology Overview

by Wenli Yuan, October 27, 2014
Industry Trends
Asia-Pacific

Abstract

The Indian insurance market is in a process of adjustment. The products will be more standardized, and the sales process will be more automated and paperless. After the adjustment, we expect the Indian insurance market to grow quickly again.

In the report Indian Insurance Market and Technology Overview, Celent looks at insurance business trends and estimates spending on IT systems.

India’s insurance market is large; it generated around US$61 billion in annual premium in 2013. The annual growth rate from 2004 to 2008 was over 20%. Regulations relating to products, distribution, and marketing have tightened, which has slowed down the rate of growth since 2010. However, the market will benefit with healthier growth in the long run.

Celent estimates that IT spending in the Indian insurance market will reach US$2.1 billion in 2015, representing a CAGR of 11.3% from 2010 to 2015.

“Insurance companies as well as the regulators in India have been investing in many technology initiatives around digitization in the recent years, to cope up with the new digital world,” says Wenli Yuan, a senior analyst with Celent’s Asian Financial Services Group and author of the report. “Digital transformation is a predominant trend in India.”

This report also includes recommendations for financial institutions and vendors that are considering expanding their business in the Indian insurance market.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Background

2

Insurance Market Overview

4

 

Market Growth

4

 

Growth of Insurance in Rural Areas and Microinsurance

5

 

Drivers of Growth

6

Life Insurance Business

7

 

Market Size

7

 

Regulation Changes

8

 

Market Concentration

8

 

Lines of Business

11

 

Life Insurance Product Standardization

11

 

Distribution Channels

12

P&C Insurance Business

17

 

Market Size

17

 

Market Concentration

18

 

Lines of Business

20

 

Distribution Channels

22

Regulator’s IT Investment and Requirements to Insurers

24

 

Consumer Education/Protection

24

 

Digitization

24

 

Data Standard and Analytics

24

IT Trends

26

 

Life Insurer Spending

26

 

General Insurer Spending

29

Conclusion

32

 

For Insurers

32

 

For Vendors

32

Leveraging Celent’s Expertise

33

 

Support for Financial Institutions

33

 

Support for Vendors

33

Related Celent Research

34

Sign in to download reports and access personalized information