India Insurance market going competitive and driven by government support programs: Ken research by Ken Research

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TABLE OF CONTENTS 1.

Asia-Pacific Insurance Industry

1.1.

Industry Introduction

1.2.

Asia-Pacific Insurance Market Size by Direct Written Premium, 2005-2012P

1.3.

Asia-Pacific Insurance Market Segmentation

1.3.1. By Geography, 2005-2012P 1.3.2. By Life and Non Life, 2005-2012P 2.

India Insurance Industry

2.1.

India Insurance Value Chain

2.2.

India Insurance Market Size by Direct Written Premium, FY’2005-FY’2012

India Insurance Government Regulations

India Life Insurance Market

4.1.

India Life Insurance Market Size, FY’2005-FY’2012

4.2.

Life Insurance Segmentation, FY’2005-FY’2012

4.3.

Market Share of Major Life Insurers in India, FY’2012

4.4.

India Life Insurance Market Future Outlook and Projection, FY’2013-FY’2016

India Non-Life Insurance Market

5.1.

India Non-Life Insurance Market Size, FY’2005-FY’2012

Non-Life Insurance Segmentation, FY’2005-FY’2012

6.1.

India Motor Insurance Industry

6.1.1. India Motor Insurance Market Size, FY’2005-FY’2012 6.1.2. Motor Insurance Segmentation, 2005-2012 6.1.2.1. FY’2012

By Public and Private Motor Insurance Direct Written Premium, FY’2005-

6.1.2.2. BY Motor Own Damage and Motor Third Party Insurance Direct Written Premium, FY’2010-FY’2012 2

6.1.3. India Automobile Insurance Distribution Channel, FY’ 2010-FY’2012 6.1.4. Market Share of Major Motor Insurers in India, FY’2012 6.1.5. India Motor insurance Market Future Outlook and Projection, FY’2013-FY’2016 6.2.

India Health Insurance Industry

6.2.1. India Health Insurance Market Size, FY’2005-FY’2012 6.2.2. Health Insurance Segmentation, FY’2005-FY’2012 6.2.3. India Health Insurance Distribution Channel, FY’ 2010-FY’2012 6.2.4. Market Share of Major Health Insurers in India, FY’2012 6.2.5. India Health insurance Market Future Outlook and Projection, FY’2013-FY’2016 6.3.

India Fire Insurance Industry

6.3.1. India Fire Insurance Market Size, FY’ 2005-FY’2012 6.3.2. Fire Insurance Segmentation, FY’2005-FY’2012 6.3.3. India Fire Insurance Distribution Channel, FY’ 2010-FY’2012 6.3.4. Market Share of Major Fire Insurers in India, FY’2012 6.3.5. India Fire insurance Market Future Outlook and Projection, FY’2013-FY’2016 6.4.

India Marine Insurance Industry

6.4.1. India Marine Insurance Market Size, FY’2005-FY’2012 6.4.2. Marine Insurance Segmentation By Public and Private Insurance Direct Written Premium, FY’2005-FY’2012 By Marine Cargo and Marine Hull Insurance Direct Written Premium, FY’2010-FY’2012 6.4.3. India Marine Insurance Distribution Channel, FY’ 2010-FY’2012 6.4.4. Market Share of Major Marine Insurers in India, FY’2012 6.4.5. India Marine insurance Market Future Outlook and Projection, FY’2013-FY’2016 6.5.

India Miscellaneous Insurance Industry

6.5.1. India Miscellaneous Insurance Market Size, FY’2005-FY’2012 6.5.2. Miscellaneous Insurance Segmentation, FY’2005-FY’2012 3

By Public and Private Insurance Direct Written Premium, FY’2005-FY’2012 By Crop, Personal Accident and Liability Insurance Direct Written Premium, FY’2010FY’2012 6.5.3. India Miscellaneous Insurance Distribution Channel, FY’ 2010-FY’2012 6.5.4. Market Share of Major Miscellaneous Insurers in India, FY’2012 6.5.5. Market Share of Major Personal Accident Insurers in India, FY’2012 6.5.6. India Miscellaneous insurance Market Future Outlook and Projection, FY’2013-FY’2016 6.6.

Market Share of Major Non Life Insurers in India, FY’2012

India Non-Life Insurance Market Future Outlook and Projection, FY’2013-FY’2016

India Insurance Industry Trends and Developments

Asia-Pacific Insurance Industry Future Outlook

9.1.

Asia-Pacific Insurance Industry Future Projections

9.2.

By Geography, 2013-2016

10.

India Insurance Industry Future Projections, FY’2013-FY’2016

10.1. Cause and Effect Relationship between Dependent and Independent Factors Prevailing in India Insurance Market 11.

Company Profile of Major Players in India Life Insurance Industry

11.1.

Life Insurance Corporation

11.1.1. Company Profile 11.1.2. Business Strategies 11.1.3. Financial Performance 11.2.

ICICI Prudential

11.2.1. Company Profile 11.2.2. Business Strategies 11.2.3. Financial Performance 11.3.

SBI Life

11.3.1. Company Profile 4

11.3.2. Business Strategies 11.3.3. Financial Performance 12.

Company Profile of Major Players in India Non-Life Insurance Industry

12.1.

New India Assurance

12.1.1. Company Profile 12.1.2. Business Strategies 12.1.3. Financial Performance 12.2.

United India Insurance

12.2.1. Company Profile 12.2.2. Business Strategies 12.2.3. Financial Performance 13.

India Insurance Industry Macro-Economic Indicators: Historical and Projections

13.1.

India Population, 2005-2016

13.2.

GDP of India, 2005-2016

13.3.

Healthcare Expenditure of India, 2005-2016

13.4.

Total number of Vehicle in Use in India, 2005-2016

14.

Appendix

14.1.

Market Definitions

14.2.

Abbreviations

14.3.

Research Methodology

Data Collection Methods Approach Variables (Dependent and Independent) Multi Factor Based Sensitivity Model Final Conclusion 14.4.

Disclaimer 5

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LIST OF FIGURES Figure 1: Asia-Pacific Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P Figure 2: Asia-Pacific Insurance Market Segmentation by Life and non Life on the Basis of Direct Written Premium in Percentage, 2005-2012P Figure 3: Insurance Value Chain Figure 4: India Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 5: India Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 6: India life Insurance Market Segmentation by Public and Private Insurers on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 7: India life Insurance Market Segmentation by Renewal and First Premium on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 8: Market Share of Major Life Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 9: India Life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 10: India Non Life Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 11: Life Non life Insurance Market Segmentation by Motor, Health, Fire, Marine and Others on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 12: India Motor Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 13: India Motor Insurance Market Segmentation by Private and Public Insurance on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 14: India Motor Insurance Market Segmentation by Motor Own Damage and Motor Third Party Insurance on the Basis of Direct Written Premium in Percentage, FY’2010-FY’2012 6

Figure 15: India Motor Insurance Market Distribution Channel by Individual Agent, Direct Business, Brokers, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in Percentage, FY’2010-FY’2012 Figure 16: Market Share of Major Motor Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 17: India Health Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 18: India Health Insurance Market Segmentation by Public, Private and Standalone Insurance on the Basis of Direct Written Premium in Percentage, 2005-2012 Figure 19: India Health Insurance Market Distribution Channel by Direct Business, Individual Agent, Brokers, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in Percentage, FY’2010-FY’2012 Figure 20: Market Share of Major Health Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 21: India Fire Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 22: India Fire Insurance Market Segmentation by Public and Private Insurance on the Basis of Direct Written Premium in Percentage, 2005-2012 Figure 23: India Fire Insurance Market Distribution Channel by Direct Business, Individual Agent, Brokers, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in Percentage, FY’2010-FY’2012 Figure 24: Market Share of Major Fire Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 25: India Marine Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 26: India Marine Insurance Market Segmentation by Public and Private Insurance on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 27: India Marine Insurance Market Segmentation by Marine Cargo and Hull Insurance on the Basis of Direct Written Premium in Percentage, FY’2010-FY’2012 Figure 28: India Marine Insurance Market Distribution Channel by Direct Business, Broker, Individual Agent, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in Percentage, FY’2010-FY’2012 7

Figure 29: Market Share of Major Marine Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 30: India Miscellaneous Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Figure 31: India Miscellaneous Insurance Market Segmentation by Public and Private Insurance on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 Figure 32: India Miscellaneous Insurance Market Segmentation by Crop, Personal Accident, Liability and Other Insurance on the Basis of Direct Written Premium in Percentage, FY’2010FY’2012 Figure 33: India Miscellaneous Insurance Market Distribution Channel by Direct Business, Individual Agent, Broker, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in Percentage, FY’2010-FY’2012 Figure 34: Market Share of Major Miscellaneous Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 35: Market Share of Major Personal Accident Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 36: Market Share of Major Non Life Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Figure 37: India Non life Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Figure 38: India Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2012-2016 Figure 39: India Life Insurance Premium Income of Life Insurance Corporation in USD Million, FY’2005-FY’2012 Figure 40: India Life Insurance Premium Income of ICICI Prudential in USD Million, FY’2005FY’2012 Figure 41: India Life Insurance Premium Income of SBI Life in USD Million, FY’2005FY’2012 Figure 42: India Non-Life Insurance Direct Written Premium of New India Assurance in USD Million, FY’2005-FY’2012 Figure 43: India Non-Life Insurance Direct Written Premium of United India Insurance in USD Million, FY’2005-FY’2012 8

Figure 44: India Population in Million, 2005-2016 Figure 45: GDP of India in USD Million, 2005-2016 Figure 46: Healthcare Expenditure of India in USD Million, 2005-2016 Figure 47: Total Number of Vehicle in Use in India in Million, 2005-2016

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LIST OF TABLES Table 1: Asia-Pacific Insurance Market Segmentation by Countries on the Basis of Direct Written Premium in USD Billion, 2005-2012P Table 2: Asia-Pacific Insurance Market Segmentation by Life and Non Life on the Basis of Direct Written Premium in USD Billion, 2005-2012P Table 3: Top Insurance Product of the Leading Insurance Companies in India Table 4: Difference between ULIP and Traditional Policies Table 5: India life Insurance Market Segmentation by Public and Private Insurers on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Table 6: India life Insurance Market Segmentation by Renewal and First Premium on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Table 7: Market Share of Major Life Insurers on the Basis of Direct Written Premium in Percentage, FY’2012 Table 8: India Motor Insurance Market Segmentation by Private and Public Insurance on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Table 9: India Motor Insurance Market Segmentation by Motor Own Damage and Motor Third Party Insurance on the Basis of Direct Written Premium in USD Million, FY’2010-FY’2012 Table 10: India Motor Insurance Market Distribution Channel by Individual Agent, Direct Business, Brokers, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in USD Million, FY’2010-FY’2012 Table 11: Market Share of Major Motor Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 Table 12: India Motor Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Table 13: India Health Insurance Market Segmentation by Public, Private and Standalone Insurance on the Basis of Direct Written Premium in USD Million, 2005-2012 Table 14: India Fire Insurance Market Distribution Channel by Direct Business, Individual Agent, Brokers, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in USD Million, FY’2010-FY’2012 Table 15: Market Share of Major Health Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 10

Table 16: India Health Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Table 17: India Fire Insurance Market Segmentation by Public and Private Insurance on the Basis of Direct Written Premium in USD Million, 2005-2012 Table 18: India Fire Insurance Market Distribution Channel by Direct Business, Individual Agent, Brokers, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in USD Million, FY’2010-FY’2012 Table 19: Market Share of Major Fire Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 Table 20: India Fire Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Table 21: India Marine Insurance Market Segmentation by Public and Private Insurance on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Table 22: India Marine Insurance Market Segmentation by Marine Cargo and Hull Insurance on the Basis of Direct Written Premium in USD Million, FY’2010-FY’2012 Table 23: India Marine Insurance Market Distribution Channel by Direct Business, Broker, Individual Agent, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in USD Million, FY’2010-FY’2012 Table 24: Market Share of Major Marine Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 Table 25: India Marine Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Table 26: India Marine Insurance Market Segmentation by Public and Private Insurance on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Table 27: India Miscellaneous Insurance Market Segmentation by Crop, Personal Accident, Liability and Other Insurance on the Basis of Direct Written Premium in USD Million, FY’2010FY’2012 Table 28: India Miscellaneous Insurance Market Distribution Channel by Direct Business, Individual Agent, Broker, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in USD Million, FY’2010-FY’2012 Table 29: Market Share of Major Miscellaneous Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 11

Table 30: Market Share of Major Personal Accident Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 Table 31: India Miscellaneous Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Table 32: Market Share of Major Non Life Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 Table 33: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016 Table 34: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of India Insurance Market Table 35: New India Assurance Offices in India Table 36: Correlation Matrix of the India Insurance Industry Table 37: Regression Coefficients Output of India Insurance Industry

ASIA-PACIFIC INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, 2005-2012P

The insurance market in Asia-Pacific region has grown remarkably over the past few years due to the growth in the emerging market such as China, Japan, India, Australia, Taiwan and South Korea. The countries in the Asia-Pacific region are at different stages of economic development unlike the European countries and the US which has created significant opportunities for the insurers in the region in order to serve the financial needs of the customers. The market in the region has grown at a CAGR of 11.9% from USD ~ million in 2005 to USD ~million in 2012â&#x20AC;Ś Figure: Asia-Pacific Insurance Market Size on the Basis of Direct Written Premium in USD Million, 2005-2012P 16,00,000.0 14,00,000.0

USD Million

12,00,000.0 10,00,000.0 8,00,000.0 6,00,000.0 4,00,000.0 2,00,000.0 0.0 2005

2006

2007

2008

2009

2010

2011

2012P

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ASIA-PACIFIC INSURANCE MARKET SEGMENTATION

BY GEOGRAPHY, 2005-2012P

Asia-Pacific insurance industry is majorly contributed by 6 major countries such as Japan, China, South Korea, Taiwan, India and Australia with the share of ~% in 2012. Japan insurance market is the second largest in the world with the contribution of more than ~% in 2012…. The China insurance industry is China insurance industry is one of one of the predominant markets in the insurance industry the predominant markets in the insurance industry in the Asiain the Asia-Pacific region with a contribution of ~% of the Pacific region with a contribution direct written premium in the region in 2012… of ~% of the direct written premium in the region in 2012.

South Korea is the third largest market with a contribution of ~% in 2012. The country insurance sector is more complicated with limited growth opportunities in comparison with the growing market in the region such as China and India… Table: Asia-Pacific Insurance Market Segmentation by Countries on the Basis of Direct Written Premium in USD Billion, 2005-2012P Countries

2005

2006

2007

2008

2009

2010

2011

2012P

Japan China South Korea Taiwan India Australia Hong Kong Singapore Thailand Malaysia Indonesia

New Zealand Philippines Vietnam Pakistan Kazakhstan Bangladesh Sri Lanka Total

INDIA INSURANCE INDUSTRY

INDIA INSURANCE MARKET SIZE BY DIRECT WRITTEN PREMIUM, FY’2005-FY’2012

The insurance market of the country has experienced a decline in the growth rate from 6.1% in FY’2011 to 0.2% in FY’2012….. After the opening up of Indian insurance market for private sector, the industry has first time has reported a fall in the insurance density from INR ~ in 2011 to INR ~ in 2010. The insurance density is measured as a ratio of premium to total population. Table: Top Insurance Product of the Leading Insurance Companies in India Company

Product

LIC ICICI Prudential Reliance General Insurance Bajaj Allianz HDFC Life Tata AIG Insurance

Kotak Life Insurance Aviva Future Generali MetLife Star Union Dai-ichi Life Insurance Shriram Life Insurance Bharti AXA IDBI Federal Canara HSBC OBC Life Insurance DLF Pramerica Life Insurance IndiaFirst Life Insurance Sahara Life Insurance Apollo Munich Health Insurance Star Health Insurance IFFCO TOKIO General Insurance New India Assurance Oriental Insurance National Insurance Cholamandalam MS General Insurance HDFC Ergo Universal Sompo General Insurance L&T Insurance

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Figure: India Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 80,000.0 70,000.0

USD Million

60,000.0 50,000.0 40,000.0 30,000.0 20,000.0 10,000.0 0.0 FY'2005

FY'2006

FY'2007

FY'2008

FY'2009

FY'2010

FY'2011

FY'2012

Note: FY ending- 31st March Life Insurance is in Premium Income Non-Life Insurance is in Direct Written Premium

INDIA LIFE INSURANCE MARKET

LIFE INSURANCE SEGMENTATION, FY’2005-FY’2012

In FY’2012, the single premium income product has experienced a negative growth of ~% in comparison to the positive growth of ~% in FY’2011. The single premium products continue to play a major role for LIC as they contribute around ~% of the total LIC premium income in FY’2011. In FY’2012, Life Insurance Corporation of India (LIC) has reported a solvency ratio of ~% which was same as of FY’2011 while the ~ life insurance companies have maintained the solvency ratio above ~% in which ~ players has a ratio of above ~%. The solvency ratio is used to measure the company's ability to meet long term obligations. The life insurance industry of the country has paid a claim of INR ~ crore in FY’2012 constituting around ~% of the direct written premium in FY’2012. The benefits paid by the private insurers stood at INR ~5 crore while LIC has paid a claim of INR ~ crore in FY’2012. In 17

FY’ 2012, the life insurance companies has settled approximately ~ lakh claims on individual policies with a total payout of INR crore. In addition, the industry has also paid a benefit of around INR ~ on group policies. Table: Difference between ULIP and Traditional Policies Features

ULIP

Traditional Policies

Description Flexibility of Investment Transparency Maturity Benefits Payouts Partial Withdrawal Switching Options Charges Structure

Figure: India life Insurance Market Segmentation by Public and Private Insurers on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 1.2 1.0

In Percentage

0.8 0.6 0.4 0.2 0.0 FY'2005

FY'2006

FY'2007

FY'2008

Private Insurers

FY'2009

FY'2010

FY'2011

FY'2012

Public Insurers

Note: FY ending- 31st March Life Insurance is in Premium Income

Table: India life Insurance Market Segmentation by Public and Private Insurers on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Segments

FY’2005 FY’2006 FY’2007 FY’2008 FY’2009

FY’2010

FY’2011

FY’2012

Public Insurers Private Insurers Total Note: FY ending- 31st March Life Insurance is in Premium Income

Figure: India life Insurance Market Segmentation by Renewal and First Premium on the Basis of Direct Written Premium in Percentage, FY’2005-FY’2012 1.2 1.0

In Percentage

0.8 0.6 0.4 0.2 0.0 FY'2005

FY'2006

FY'2007

FY'2008

First Year Premium

FY'2009

FY'2010

FY'2011

FY'2012

Renewal Premium

Note: FY ending- 31st March Life Insurance is in Premium Income

Table: India life Insurance Market Segmentation by Renewal and First Premium on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 Segments

FY’2005

FY’2006 FY’2007 FY’2008 FY’2009

FY’2010

FY’2011

FY’2012

Renewal Premium First Year Premium Total Note: FY ending- 31st March Life Insurance is in Premium Income

INDIA NON-LIFE INSURANCE MARKET

MARKET SHARE OF MAJOR NON LIFE INSURERS IN INDIA, FY’2012

The general insurance industry of India is dominated by the presence of the top five players such as New India Assurance, United India Insurance, National Insurance, Oriental Insurance and ICICI Lombard with the share of ~% in FY’2012. New India Assurance is the leading non life insurance industry with the share of ~% and the direct written premium of USD ~ million in FY’2012.

Figure: Market Share of Major Non Life Insurers on the Basis of Direct Written Premium in Percentage, FY’2012

New India Assurance United India Insurance National Insurance Oriental Insurance ICICI Lombard Bajaj Allianz IFFCO-Tokio HDFC Ergo Reliance TATA AIG Royal Sundaram Others

Note: FY ending- 31st March

Table: Market Share of Major Non Life Insurers on the Basis of Direct Written Premium in USD Million, FY’2012 Players

FY’2012

New India Assurance United India Insurance National Insurance Oriental Insurance ICICI Lombard Bajaj Allianz IFFCO-Tokio HDFC Ergo Reliance

TATA AIG Royal Sundaram Others Total Note: FY ending- 31st March

INDIA HEALTH INSURANCE INDUSTRY

INDIA HEALTH INSURANCE MARKET SIZE, FY’2005-FY’2012 …India’s health insurance industry has showcased a phenomenal growth in the past 7 years from USD ~ million in FY’2005 to USD ~ million in FY’2012. The growth was primarily due to the constant India’s health insurance industry increase in the GDP… has showcased a phenomenal growth in the past 7 years from USD ~ million in FY’2005 to USD ~ million in FY’2012.

Figure: India Health Insurance Market Size on the Basis of Direct Written Premium in USD Million, FY’2005-FY’2012 3,000.0

USD Million

2,500.0 2,000.0 1,500.0 1,000.0 500.0 0.0 FY'2005

FY'2006

FY'2007

FY'2008

FY'2009

FY'2010

FY'2011

FY'2012

Note: FY ending- 31st March

INDIA FIRE INSURANCE INDUSTRY

INDIA FIRE INSURANCE DISTRIBUTION CHANNEL, FY’ 2010FY’2012

…In FY’2012, the direct selling is the leading contributor in the fire insurance industry with the share of ~%. This distribution channel has sold around ~ thousand fire insurance policies in FY’2012…. …In FY’2012, the bancassurance segment has sold around ~ thousand fire insurance policies in the country. Figure: India Fire Insurance Market Distribution Channel by Direct Business, Individual Agent, Brokers, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in Percentage, FY’2010-FY’2012 100.0% 90.0% 80.0% 70.0%

In Percentage %

60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Others

FY'2010

FY'2011 Referral Arrangements

FY'2012 Corporate Agents

Brokers

Individual Agent

Direct Business

Note: FY ending- 31st March

Table: India Fire Insurance Market Distribution Channel by Direct Business, Individual Agent, Brokers, Corporate Agent, Referral Arrangements and Others on the Basis of Direct Written Premium in USD Million, FY’2010-FY’2012 Segments

FY’2010

FY’2011

FY’2012

Direct Business Individual Agent Brokers Corporate Agent Referral Arrangement Others Total Note: FY ending- 31st March

INDIA MARINE INSURANCE INDUSTRY

INDIA MARINE INSURANCE MARKET FUTURE OUTLOOK AND PROJECTION, FY’2013-FY’2016

The Indian marine insurance industry is expected to grow at a CAGR of 6.5% in the next few years and is predicted to record direct written premium of USD ~ million in FY’2016. The growth in the market will be influenced by the rising premium rates in the country on account of surging claim ratio…

Table: India Marine Insurance Market Projections on the Basis of Direct Written Premium in USD Million, FY’2013-FY’2016 Segments

FY’2013

FY’2014

FY’2015

FY’2016

Public Insurance Private Insurance Total Note: FY ending- 31st March

INDIA INSURANCE INDUSTRY TRENDS AND DEVELOPMENTS

MOUNTING IMPORTANCE OF IT IN HEALTHCARE Information and communication technology (ICT) has played a major role in strengthening the growth of healthcare industry of India….

ASIA-PACIFIC INSURANCE INDUSTRY FUTURE OUTLOOK

…Overall, the market of the Asia-Pacific insurance is expected to grow at a CAGR of 11.2% from 2013-2016. The market in the near future is expected to witness consolidation and higher competition level with the entrance of more global players in the market.

ASIA-PACIFIC INSURANCE INDUSTRY FUTURE PROJECTIONS

BY GEOGRAPHY, 2013-2016 The Asia-Pacific Insurance industry is expected to grow at a CAGR of 11.2% from 2013-2016 on account of rising population in the emerging market of Asia such as India and China. It is anticipated that the total direct written premium of the insurance products will increase to USD ~ million in 2016 from USD ~ million in 2012. Table: Asia-Pacific Insurance Market Projections by Countries on the Basis of Direct Written Premium in USD Million, 2013-2016 Countries

2013

2014

2015

2016

Japan China South Korea Taiwan India Australia Hong Kong Singapore Thailand Malaysia Indonesia New Zealand Philippines Vietnam Pakistan Kazakhstan Bangladesh Sri Lanka Total

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INDIA INSURANCE INDUSTRY FUTURE PROJECTIONS, FY’2013-FY’2016

…Under the base scenario analysis, the insurance market of India is expected to grow at a CAGR of 9.9% and is predicted to record direct written premium of USD ~ million in FY’2016…. The worst case scenario analysis assumes that the insurance market will suffer a massive decline in comparison to the historical years and is predicted to grow at a CAGR of 1.5% in the next four years… The best case scenario analysis predicts that the market will grow at strong CAGR of 12.9% and is anticipated to register a direct written premium of USD ~ million in FY’2016… Figure: India Insurance Market Projections on the Basis of Direct Written Premium in USD Million, 2012-2016 1,40,000.0 1,20,000.0

USD Million

1,00,000.0 80,000.0 60,000.0 40,000.0 20,000.0 0.0 FY'2013 Worst Case

FY'2014

FY'2015 Base Case

FY'2016 Best Case

Note: FY ending- 31st March

CAUSE AND EFFECT RELATIONSHIP BETWEEN DEPENDENT AND INDEPENDENT FACTORS PREVAILING IN INDIA INSURANCE MARKET

Table: Cause and Effect Relationship Analysis between Industry Factors and Expected Industry Prospects of India Insurance Market Industry Factors Strict Government Regulations and Support Increasing Population

Market Impact

Comments  Cause:.  Positive Effect:  Negative Effect:  Cause:  Effect:

Increasing Consumer Spending Intensifying Competition

 Cause:  Effect:

 Cause:  Positive Effect:  Negative Effect:

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