Dun & Bradstreet India’s Leading BFSI Companies 2017

Number of Policies issued by non-life insurers

Number of Policies issued in FY15 (mn)

Number of Policies issued in FY16 (mn)

Insurer

Growth in FY15 (%)

Growth in FY16 (%)

Public Sector Private Sector

67.8 50.5

12.9 19.0 15.4

67.1 54.9

-0.96

8.8 3.2

Total

118.2

122.1

Source: IRDAI Annual Report 2015-16

The public sector insurers witnessed a marginal decrease in the number of policies issued in FY16. The number of policies issued by the public sector insurers declined from 67.8 mn in FY15 to 67.1 mn in FY16, declining by 0.96% as compared to the growth of 12.9% in FY15. On the other hand, the number of policies issued by the private sector insurers grew from 50.5 mn in FY15 to 54.9 mn in FY16, thereby registering a growth of 8.8% in FY16 as compared to 19% in FY15. Government Initiatives The Government of India has taken a number of initiatives to boost the insurance industry. Few of them are: Up to 49% of foreign investment allowed through automatic route subject to the guidelines on Indian management and control, to be verified ¾ ¾ by the regulators. Service tax on single premium annuity policies reduced from 3.5% to 1.4% of the premium paid in certain cases. ¾ ¾ The two committees formed by The Insurance Regulatory and Development Authority (IRDA) of India to explore and suggest ways to promote ¾ ¾ e-commerce in the insurance sector in order to increase insurance penetration and drive financial inclusion. Draft regulations by IRDAI to impose obligations on insurers towards providing insurance cover to the rural and economically weaker sections ¾ ¾ of the population. Foreign Investment Promotion Board (FIPB) has cleared 15 Foreign Direct Investment (FDI) proposals including large investments in the insurance ¾ ¾ sector by Nippon Life Insurance, AIA International, Sun Life and Aviva Life leading to a cumulative investment of ` 72.6 bn (US$ 1.09 bn). IRDAI has given initial approval to Switzerland-based Swiss Re, French-based Scor SE, and two Germany-based reinsurers namely, Hannover Re ¾ ¾ and Munich Re to open their respective branches in India.

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