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Bangalore, Sep 29 (PTI) Rapid economic expansion, ably supported by digital infrastructure and innovation, will be instrumental in making India’s insurance market one of the largest in the world, Insurance Regulatory and Development Authority of India (IRDAI) Chairman Debasish Panda said on Thursday.
He was speaking at an exclusive industry forum to discuss “Investing in India’s booming insurance ecosystem”, hosted here by the Indian Venture & Alternate Capital Association (IVCA), the supreme industry body for alternative assets.
“The size of the (insurance) market is estimated at $200 billion by FY27 at the current growth rate. However, we have ambitious plans and expect the market to grow by leaps and bounds and that the contribution of venture capital, private equity and family offices in nation building is a step in the right direction,” Panda said.
“With the support of the ecosystem, India’s burgeoning insurance industry is gaining an additional source of capital and helping to promote new products and solutions to overcome the current affordability and accessibility challenges,” a- he said in a statement from the IVCA.
According to the release, insurance penetration in India has accelerated in recent years from 3.76% in FY20 to 4.2% in FY21.
Several reasons are cited for this development, including the ease of doing business, the deployment of digital solutions by insurers, changing consumer attitudes and their realization of financial security, product developments including the new regulatory framework regarding the approval and distribution of products by IRDAI. , it said.
“With India now ranking 10th in the global life insurance market and ahead of China (at 2.4%) and the UK (at 3%), we are well placed to meet growing demand from younger, digitally-centric consumers emerging from small and large businesses in new geographies and across life and non-life,” said Karthik Reddy, President, IVCA and Co-Founder and Managing Partner , Blume Ventures.PTI KSU
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