Insurance Companies in India – A revolutionary market
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Posted by :
on | Jan 29,2015
Insurance companies in India have undergone a drastic transformation in the last decade. Liberalization has led to many companies entering the market. Many of them view India as the strategic emerging market for insurance. The industry has undergone tremendous change, witnessing phases of rapid growth, intensifying competition in both life and general insurance having more than 20 competing companies in India. There have also been a number of product innovations and operational innovations necessitated by the increasing competition.
In India, 1818 saw the advent of the first insurance company. However, the first company failed to gain market. The second company was established in 1839. However, this era was dominated by foreign insurance companies, namely, Albert Life Insurance, Royal Insurance, Liverpool and London Globe Insurance. The Indian Companies had a tough time facing this competition and setting up its own market.
The history of Indian Insurance companies dates back to the industrial revolution of the west and the subsequent growth sea-faring trade and commerce in the 17th Century. It was introduced in India as a legacy of the British trade. This millennium has seen the insurance industry come a full circle completing almost 200 years since its introduction in India. The process of re-opening the sector began in 1990 and since then the Indian market has seen various brand names in insurance becoming insurance giants within a few years. This facilitated foreign companies to collaborate with the Indian companies and thus making the insurance market grow in loops and bounds. Today there are 28 general insurance companies in India and 24 life insurance companies operating all over the country.
Although the market is ever evolving, the Insurance companies in India are struggling to escape the shadows cast by the struggles and uncertainties of the past few years. The available headroom for development, sustainable external growth drivers and competitive strategies can however help in achieving the overall growth we are expecting for the Indian market at present. Consumer awareness and protection has been given the utmost importance while also keeping growth in mind. Today, the company offer a number of tailor made policies so as to fulfill the needs of their clients.
The insurance companies in India are growing at a rapid rate. Along with the banking services, the insurance companies make up to 7% of the total GDP. A well developed and well evolved insurance sector is a boon for the economic development as it guarantees long term funds to increase the risk taking capacity of the Indian population. The Insurance Companies in India are playing a fantastic role in the overall development of the Indian Market.