The Indian life insurance industry is expected to contract in 2020, declining by 0.9% in 2020 as compared to 8.8% growth recorded in 2019.
According to GlobalData, India’s life insurance market is forecasted to grow at a compound annual growth rate (CAGR) of 5.3% during the forecast period 2019-2023.
Pratyusha Mekala, insurance analyst at GlobalData, commented: “Bancassurance and agency channels account for over 90% insurers’ new business premiums in India. Due to the lockdown restrictions, sales through these channels have been severely impaired.”
As a result of lockdown, life insurers reported decline of 32.6% in new business premium in April 2020 against the same period last year. State-owned market leader Life Insurance Corporation of India registered a decline of 32% in premium from new business while private life insurers have seen a decline of 33.3% during the same period.