Indian Insurance Market and Technology Overview
The Indian insurance market is in a process of adjustment. The products will be more standardized, and the sales process will be more automated and paperless. After the adjustment, we expect the Indian insurance market to grow quickly again.
In the report Indian Insurance Market and Technology Overview, Celent looks at insurance business trends and estimates spending on IT systems.
India’s insurance market is large; it generated around US$61 billion in annual premium in 2013. The annual growth rate from 2004 to 2008 was over 20%. Regulations relating to products, distribution, and marketing have tightened, which has slowed down the rate of growth since 2010. However, the market will benefit with healthier growth in the long run.
Celent estimates that IT spending in the Indian insurance market will reach US$2.1 billion in 2015, representing a CAGR of 11.3% from 2010 to 2015.
“Insurance companies as well as the regulators in India have been investing in many technology initiatives around digitization in the recent years, to cope up with the new digital world,” says Wenli Yuan, a senior analyst with Celent’s Asian Financial Services Group and author of the report. “Digital transformation is a predominant trend in India.”
This report also includes recommendations for financial institutions and vendors that are considering expanding their business in the Indian insurance market.