By IANS
New Delhi : India’s thriving insurance sector is all set to grow from Rs.500 billion to Rs.2 trillion ($50.7 billion) by 2010, says the Associated Chambers of Commerce and Industry of India (Assocham).
The main reasons for such a major growth would be the coming of private players and aggressive marketing, the industry chamber said.
The industry, which has seen a compounded annual growth rate of around 175 percent in the last couple of years, is likely to throw up several new avenues of business potential.
The private sector insurance business is likely to achieve a growth rate of 140 percent as against the public sector’s growth rate of 35-40 percent.
“On account of intense marketing strategies adopted by private insurance players, the market share of state owned insurance companies have come down to 70 percent in the last four-five years from over 97 percent,” said Assocham president Venugopal N. Dhoot.
Assocham also indicated that the role of private players would increase significantly in rural areas as it has enormous growth potential.
Insurers should develop viable and cost-effective distribution channels and build consumer awareness and confidence, it said.