DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/54szvw/india_insurance_re) has announced the addition of the "India Insurance Report Q2 2012" report to their offering.

Business Monitor International's India Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on India's insurance industry.

As of early 2012, the short-term outlook for India's life segment continues to be dominated by rules, introduced by the Insurance Regulatory and Development Authority (IRDA), which make it far harder for insurers to sell Unit Linked Insurance Plans (ULIPs). It is too early to say what will be the impact of a slight easing of the rules - with effect from the end of 2011 - which should make it much easier for the life insurance companies to develop ULIPs that are both profitable and attractive to customers. In the meantime, many of the insurers are actively looking to boost profitability and/or capital. Some are partnering with banks. Others are at least contemplating undertaking initial public offerings. Many are developing products that are unaffected by the (changing) rules in relation to ULIPs.

In relation to the longer-term outlook for India's life segment, there are a number of positive wildcards. The regulator may allow the private sector insurers to distribute their products through the (currently) tied agency network of Life Insurance Corporation of India (LIC), the state-owned giant which accounts for about three-quarters of all premiums written in the segment. Reports indicate that the regulator is also looking at ways to promote paperless record-keeping - which should be good for insurance companies and, probably, their customers. In early 2012, IRDA published a report which it had commissioned, which highlights the challenges (in terms of public policy and consumer education) that need to be overcome if the (mainly rural) poor are to buy life insurance. If changes are made, micro-insurance could flourish; if not, it is unlikely to do so.

As of early 2012, the latest newsflow from the non-life segment indicates that premiums continue to grow rapidly. Indeed, the trend of the last three years or so, in which non-life penetration has been falling (if gradually) appears to have come to an end. It seems that the non-life companies have been able to pass onto their customers the higher costs incurred in non-motor related lines (such as higher reinsurance premiums, for instance). Within motor-related lines, the wildcard is the possible abolition of the pool from which compulsory motorists' third party liability (CMTPL) claims are paid. This could lead to an effective liberalisation of this important part of the non-life segment and an improvement in profitability. However, it is not clear the extent to which the non-life companies would be able to lift rates and premiums for motor-related insurance.

Companies Mentioned

- Ageas

- AEGON

- AIA Group Limited

- Allianz

- Aviva

- AXA

- BNP Paribas Cardif

- Chartis

- HSBC Insurance

- ING Group

- Liberty Mutual

- Manulife

- MetLife ALICO

- Prudential Financial

- Prudential plc

- QBE

- RSA

- Sun Life Financial

- The Principal

- Zurich Financial Services ,

For more information visit http://www.researchandmarkets.com/research/54szvw/india_insurance_re

Research and Markets
Laura Wood, Senior Manager.
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Insurance

Source: Research and Markets

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