'Insurance premium may touch Rs 1 lakh crore by 2015'

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SME Times News Bureau | 26 Mar, 2010
Industry chamber, ASSOCHAM has projected that premium from General Insurance will rise to levels of close to Rs.1 lakh crore in next 5 years as awareness and income about insurance products in retail and rural sectors are rising.

According to ASSOCHAM, the insurance premium collection currently is estimated close to Rs.35,000 crore and it’s growth prospects would rise in future at speedier pace.

In rural areas, awakening levels (regarding insurance) are rising and their income is surfacing because of the various social schemes of the government, it said.

"...because of the social schemes of the government a large chunk of the rural population is getting inclined for insurance...It is one of the reason which will drive growth for insurance premium and reach projected levels of Rs 1 lakh crore by 2015," it added.

Releasing its findings, D S Rawat, Secretary General ASSOCHAM said that over 60% of population, largely in rural part of the country has yet to be tapped by insurance industry.

Since awakening levels are rising and rural incomes are surfacing because of social schemes of the government, a large chunk of rural population is getting inclined for insurance. It is one reason which will drive growth for insurance premium and reach projected levels of Rs.1 lakh crore by 2015, said Rawat.

High growth in automobile sector, huge strives in healthcare will also open up health insurance potentials substantially, she added.

According to ASSOCHAM estimates, general insurance growth will largely come from retail and rural sectors.

The Paper suggests need for innovative low cost distribution and servicing strategies to develop wider base for general insurance. In future, non-banking financial companies will also tie up with entire banking infrastructure to better utilize distribution of insurance products.