Page 61 - India Insurance Report 2023- BIMTECH

India Insurance Report - Series II 49

3. GI Business Trends and Analysis

Figure 2: Projection of Total General Insurance Premium - 2030

The growth of the general insurance industry has accelerated after the year 2015, as can be seen
from the above chart (Figure 2). We have estimated two levels of industry premium forecast: the industry
growth trend and the economic growth trend. As predicted by our model, the general insurance premium
would reach over Rs.3,91,216 by 2030. Further, considering the regulatory reforms to achieve a fully
insured India (one insurance policy for every household) by 2047 and also the expected increase in the
number of players and intermediaries in the market, the market would multiply, and the industry
premium is expected to reach well beyond Rs.5,00,000 crore in 2030 (as predicted by the model as the
optimum premium level).

While examining the future outlook of our general insurance industry, it is equally important to
examine how each of the major segments, i.e., Property, Motor, and Health Insurance, are growing and
the key challenges impacting these portfolios. The following section discusses the growth of all the
critical business segments of the general insurance business during the next few years.

3.1. Property Insurance

The Property Insurance segment broadly comprises Fire, Engineering, Motor, Miscellaneous and
Marine insurance.

The Indian Home Insurance market faces many challenges despite its growth potential. One of the
biggest challenges is home insurance’s low awareness and penetration in the Indian market. Many
homeowners are unaware of the benefits of home insurance and are therefore not motivated to purchase
it. Various studies indicate that the main reasons for not purchasing home insurance are ‘not perceiving
the need for protecting their property’, as nearly 64% stated, and many of them are unaware of the
product.