Accident, health insurance to grow by 22% by 2015: BRICdata report
While public-sector insurance providers constitute the majority of the market, private participants will continue to increase their market share by 2015, states BRICdata report
According to the BRICdata report, ‘Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2015’, India’s accident and health insurance market is expected to continue its growth trend and forecasted to grow by 22% over the next five years. The report stated that a decrease in capital requirements will create an attractive market for new entrants into the market.
While public-sector insurance providers constitute the majority of the market, private participants will continue to increase their market share in the forecast period. The introduction of new distribution channels is another key factor in the growth in the overall volume of new policies.
Four public companies hold more than 50% of the market share in the personal accident and health insurance market, although this dominance will be severely challenged by private companies in the forecast period. The key entry barrier into the market is brand recognition, and companies are expected to work towards aligning with stronger brands, both domestic and foreign, to create opportunities for collaborations or joint ventures.
The report highlights that growth in the Indian personal accident and health insurance market can be attributed to increasing healthcare expenditure, economic growth, and changing demographics. During the forecast period, public-sector insurers are expected to retain a major share of the market, while the private accident and health insurers are expected to increase their market share gradually in India. The increasing penetration of major insurance companies and banks selling insurance policies to second- and third-tier cities in India will lead to an increase in accident and health insurance plans volumes in India during the forecast period. However, key challenges include low awareness of personal accident and health insurance, low penetration in rural areas, a lack of coverage for many existing diseases, and the ineffective distribution model in the country.
Article Source: http://www.moneylife.in/article/accident-health-insurance-to-grow-by-22-by-2015-bricdata-report/22030.html
According to the BRICdata report, ‘Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2015’, India’s accident and health insurance market is expected to continue its growth trend and forecasted to grow by 22% over the next five years. The report stated that a decrease in capital requirements will create an attractive market for new entrants into the market.
While public-sector insurance providers constitute the majority of the market, private participants will continue to increase their market share in the forecast period. The introduction of new distribution channels is another key factor in the growth in the overall volume of new policies.
Four public companies hold more than 50% of the market share in the personal accident and health insurance market, although this dominance will be severely challenged by private companies in the forecast period. The key entry barrier into the market is brand recognition, and companies are expected to work towards aligning with stronger brands, both domestic and foreign, to create opportunities for collaborations or joint ventures.
The report highlights that growth in the Indian personal accident and health insurance market can be attributed to increasing healthcare expenditure, economic growth, and changing demographics. During the forecast period, public-sector insurers are expected to retain a major share of the market, while the private accident and health insurers are expected to increase their market share gradually in India. The increasing penetration of major insurance companies and banks selling insurance policies to second- and third-tier cities in India will lead to an increase in accident and health insurance plans volumes in India during the forecast period. However, key challenges include low awareness of personal accident and health insurance, low penetration in rural areas, a lack of coverage for many existing diseases, and the ineffective distribution model in the country.
Article Source: http://www.moneylife.in/article/accident-health-insurance-to-grow-by-22-by-2015-bricdata-report/22030.html
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