Page 5 - Insurance Times Octoberr 2022

India to emerge as 6th 2022 to 4.5 per cent, mainly due to in the global insurance markets this
high inflation. However, the sector is year, and a stronger, but still below-
largest insurance market
further expected to witness a growth trend in 2023.
by 2032 of close to 8 per cent Compounded
Annual Growth Rate (CAGR) between
India to become sixth largest insurance Product launches to not
2023 and 2032," it said.
market in the world in the next 10
be a key differentiator
years supported by regulatory push One of the driving factors for the
The speed of product launches in-
and rapid economic expansion, a re- sectoral growth is the systematic
creases as any industry opens up, and
port said. change into India's non-life insurance
that is also being seen in the insurance
sector brought by the pandemic.
Total insurance premiums in India will
sector. However, this will not the dif-
grow by an average 14 per cent per It resulted in a greater risk awareness ferentiating factor as insurance com-
annum in nominal local currency terms leading to higher demands in health
panies are instead being assessed on
over the next decade, making India the insurance, making it the biggest Line
the basis of execution and implemen-
6th largest in terms of total premium of Business (LoB) by premium volume
tation of these products, according to
volume by 2032 from 10th largest in in 2021.
ICICI Lombard General Insurance Ex-
2021, Swiss Re Institute said in its re-
The report said, the global economy is ecutive Director Sanjeev Mantri.
port.
on the brink of inflationary recessions,
"Launch of a product will not be a key
With regard to Indian life insurance with policymakers facing an increas-
differentiator here. What you require
industry, the report said it will grow at
ingly difficult inflation-growth trade off. is technology that supplements these
an exceptional rate of 6.6 per cent (in
Swiss Re expects India to reign as the and the infrastructure to implement
real terms) in 2022 and further grow
world's fastest-growing economy in these on the ground. Our execution is
at 7.1 per cent in 2023.
2022. Inflation and monetary policy far more differentiated than what oth-
Considering the projected growth rate, ers can do, and that's what separates
tightening are driving long-term sover-
the life insurance premiums in India us," Mantri said.
eign bond yields higher, with markets
are set to cross $100 billion for the first
pricing in both higher real yields and The statement was made at an event
time in 2022, it said.
inflation expectations, it said, adding, to announce the launch of 14 new or
As far as non-life insurance market is insurers will, over time, benefit from enhanced products by ICICI Lombard
concerned, the report said it has re- higher investment returns that will help General Insurance. These include rid-
turned to a growth of 5.8 per cent (in offset the higher claims cost. ers/add-ons and upgrades across
real terms) in 2021 after a slight con- health, motor, travel and corporate
Swiss Re projected over $7 trillion glo-
traction in 2020. policies offered by the insurer.
bal premiums by end of 2022. It ex-
"The growth will slow down slightly in pects the stalling of premium growth The insurance industry is seeing new
The Insurance Times, October 2022 5