New Delhi, Nov 15
India’s insurance sector clocked a robust 11 per cent compound annual growth rate to cross the $130 billion mark during FY2020-23, surpassing Asian peers China and Thailand, which grew at less than 5 per cent, according to a McKinsey report.
The report. titled 'Steering Indian Insurance from Growth to Value in the Upcoming Techade’, said that while the country's life insurance industry grew to $107 billion as of 2023, the general insurance industry touched $35.2 billion.
A growing middle class, greater awareness, rising healthcare costs, and supportive regulations have combined to offer high growth for India’s insurance industry over the last few years, the report added.
However, there is immense growth potential as a significant portion of the Indian population and insurable assets remain uninsured, increasing the risks of high out-of-pocket expenses, adding to the overall economic strain, and undermining the industry’s ability to bring full benefit to society.
Affordable private health insurance coverage could also reduce the strain on government healthcare, potentially freeing government funds to improve healthcare infrastructure, the report pointed out.