India's life insurance industry is poised for higher growth in the second half of the current financial year to next March, due to low penetration and the rising share of financial assets in household savings, Deutsche Bank says.
Private insurers are expected to lead the table, riding on tie-ups with banks to sell plans. Private sector life insurers have outperformed the state-owned Life Insurance Corporation of India, the nation’s largest life insurer. The market share of private players increased to 54% in November 2017 from 52.7% in the same month a year ago.
Deutsche Bank says high growth next month should imply that the savings habits of Indian households are evolving structurally towards financial savings, with insurance a key beneficiary. Bancassurance heavy companies like SBI Life, ICICI Prudential Life Insurance as well as HDFC Life will continue to grow faster than industry average, even as agency-dependent insurers also gain, it says.