General insurance in India is forecast to grow by 9% this year due to strong economic growth, favourable regulatory developments and rapid digitalisation.
Data and analytics specialist GlobalData predicts India’s GI sector will grow to INR 3.0trn ($38.1bn) in 2023 and reach INR 4.2trn ($49.2bn) by 2027. India’s real GDP rose by an estimated 7% last year as manufacturing and investment activities gained traction, while industrial output and exports increased.
The Insurance Regulatory and Development Authority of India (IRDAI) introduced multiple regulatory reforms in 2022-23 to “improve the ease of doing business, facilitate product innovation, simplify insurance products, reduce premium rates and strengthen distribution channels”, says GlobalData.
A direct-to-customer online platform to be launched later this year will be a one-stop shop for policy sales, renewals and claims settlements, after the IRDAI ordered companies to reduce agent and broker commissions where a policy is bought directly from an insurer.