Ready to move into India

Asia

Rating agency Fitch predicts the the expected lifting of the foreign direct investment (FDI) limit from the current 26% to 49% in the Indian insurance sector will be followed by a significant increase in the number of private sector insurance companies over the next three years. The private sector insurance market currently consists of 21 companies: eight in the non-life sector and 13 in the life sector. The rest of the market consists of the four public sector insurance companies which continue to account for over 75% of India’s US$21.2bn annual premium income. “Despite the strong growth and improving penetration levels, the Indian market is still quite small and holds the potential to expand further,” Fitch says in its new report, entitled “The Indian Insurance Sector.” According to Fitch, the market’s premium income is split roughly 60:40 between life and non-life businesses respectively.