Released on: September 11, 2008, 4:34 am

Press Release Author: Shushmul Maheshwari

Industry: Industrial

Press Release Summary: RNCOS has recently added a new Market Research Report titled,
“Emerging Rural Insurance Market in India” to its report gallery. The report gives
an extensive research and in-depth analysis of the insurance sector in India.

Press Release Body: RNCOS has recently added a new Market Research Report titled,
“Emerging Rural Insurance Market in India” to its report gallery. India is fast
emerging on the world map as a strong economy and a global power. The country is
going through a phase of rapid development and growth. All the vital industries and
sectors of the country are registering growth and thus, luring foreign investors.
And insurance sector is one of them. To throw light on the Indian insurance sector,
RNCOS launched a new report that gives an extensive research and in-depth analysis
of the insurance sector in India. This report helps clients to analyze the
leading-edge opportunities critical to the success of the insurance industry in
India. Based on this analysis, the report gives a future forecast of the market that
is intended as a rough guide to the direction in which the market is likely to move.

Market Analysis

With a huge population and large untapped market, insurance happens to be a big
opportunity in India. The insurance business (measured in the context of first year
premium) grew by 47.93% in 2005-06, surpassing the growth of 32.49% achieved in
2004-05. However, insurance penetration in the country continues to be low.

Insurance penetration or premium volume as a share of a country’s GDP for the year
2005 stood at 2.53% for life insurance and 0.62% for non-life insurance. The level
of penetration tends to rise as income increases, particularly in life insurance.
India, with its huge middle class households, has exhibited potential for the
insurance industry. This has made international players to look at the Indian
market. Moreover, saturation of markets in many developed economies has made the
Indian market all the more attractive for global insurance majors.

Key Findings

- The total life insurance premiums market in India could grow from Rs 16,8600 Crore
(Nearly US$ 42.85 Billion, Rs 1 = US$ 0.0254146) in 2006-07 to Rs 1,230,000 Crore
(Nearly US$ 312.6 Billion, Rs 1 = US$ 0.0254146) by 2010-11.
- The total non-life insurance premium is expected to increase at a CAGR of nearly
24.7% for the period spanning from 2007-08 to 2010-11.
- With the entry of several low cost airlines along with fleet expansions by
existing ones and increasing corporate aircraft ownership, the Indian aviation
insurance market is all set to boom in a big way in coming few years.
- The home insurance segment is set to achieve a 100% growth as latest inclusion by
financial institutions have made home insurance obligatory for housing loans
approval.
- Health insurance is poised to become the second largest business for non-life
insurers in the next three years after motor insurance.
- A booming life insurance market has propelled the Indian life insurance agents
into the top 10 country list in terms of membership to the Million Dollar Round
Table (MDRT) — an exclusive club for the highest performing life insurance agents.

Key Issues and Facts

- Where does India stands in the context of emerging countries?
- What are key reasons behind attractiveness of Indian insurance market?
- What are growing insurance segments in India?
- What are various opportunity areas in the market?
- What are the key issues need to be addressed?
- What is the status of Microinsurance in India?
- What are the various avenues for the growth of Microinsurance in India?
- What are the various challenges faced by the Microinsurance sector?
- What initiatives the government is taking to promote the Indian insurance market?
- Who are the major players engaged in providing Microinsurance in the country?

Key Players

The major players discussed in the report are Life Insurance Corporation of India,
Bajaj Allianz, ICICI Prudential, HDFC Standard, and SBI Life under life insurance
segments and New India, National Insurance, Oriental, United India, and ICICI
Lombard under non-life insurance segments.

Research Methodology Used

Information Sources
Information has been sourced from books, newspapers, trade journals, and white
papers, industry portals, government agencies, trade associations, monitoring
industry news and developments, and through access to more than 3000 paid databases.

Analysis Methods
The analysis methods include ratio analysis, historical trend analysis, and linear
regression analysis using software tools, judgmental forecasting and cause and
effect analysis.

About RNCOS:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

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