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MarketLineIC IndiaInsurance 080423
MarketLineIC IndiaInsurance 080423
Insurance in India
November 2021
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MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT
AND IS NOT TO BE PHOTOCOPIED
Industry Profiles
1. Executive Summary
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leading players (SBI Life, ICICI Prudential, HDFC Life Insurance Company, and Max Life Insurance) holding a
cumulative 47.8% market share in 2020. Given that life insurance comprises the market’s most lucrative
segment, it is unsurprising that these players are also the largest life insurance providers in the country.
Leading players have gained a strong presence in this market through a diversified product portfolio and
the accumulation of awards and accolades, which have strengthened their brand image and reputation. In
addition, several players have engaged in M&A activity in order to consolidate their market position and
stamp out smaller competitors.
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TABLE OF CONTENTS
1. Executive Summary 2
2. Market Overview 8
3. Market Data 10
4. Market Segmentation 11
5. Market Outlook 13
7. Competitive Landscape 24
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7.5. What has been the rationale behind recent M&A activity? ......................................................................26
8. Company Profiles 28
9. Macroeconomic Indicators 40
Appendix 42
Methodology ...........................................................................................................................................................42
About MarketLine....................................................................................................................................................44
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LIST OF TABLES
Table 1: India insurance market value: $ billion, 2016–20 10
Table 10: ICICI Prudential Life Insurance Co Ltd: Annual Financial Ratios 32
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LIST OF FIGURES
Figure 1: India insurance market value: $ billion, 2016–20 10
Figure 8: Factors influencing the likelihood of new entrants in the insurance market in India, 2020 19
Figure 9: Factors influencing the threat of substitutes in the insurance market in India, 2020 21
Figure 10: Drivers of degree of rivalry in the insurance market in India, 2020 22
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2. Market Overview
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outlook on one’s economic ability and long-term perspective of their country tends to encourage investment in
insurance where financially possible.
The Indian insurance market had total gross written premiums of $108.2bn in 2020, representing a compound
annual growth rate (CAGR) of 9.9% between 2016 and 2020. In comparison, the South Korean and Chinese
markets grew with CAGRs of 2.4% and 10% respectively, over the same period, to reach respective values of
$189.5bn and $655.9bn in 2020.
In the past couple of years, growth in the Indian market has been supported by the incorporation of new
technologies into insurance companies’ product offerings. For instance, in 2018, ICICI Life became the first life
insurance company in India to offer WhatsApp as a service channel to its customers. This trend has been
accelerated by the COVID-19 pandemic, as nationwide lockdowns and social distancing measures have restricted
consumers’ ability to consult insurance firms in person. Broadly known as ‘InsurTech’, technological advancement
has enabled companies to target a wider pool of potential customers, improved customer service, and provided
greater opportunities for data collection and fraud detection. This year, SBI Life has launched several apps,
including M-Connect Life and Easy Access, to support online sales and digital policy management. Similarly, in
September 2020, ICICI launched an artificial-intelligence powered chatbot to improve customer response accuracy
and efficacy in the purchasing process.
The Indian insurance market has also benefited from various government initiatives aimed at expanding the
market and boosting growth. For instance, the Pradhan Mantri Fasal Bima Yojana (PMFBY) is a government-
sponsored crop insurance scheme, launched in 2016, that integrates multiple stakeholders into a singular platform
to protect the agricultural sector from any unexpected losses, such as those incurred by adverse weather
conditions or other natural disasters, and support sustainable agricultural production. The insurance Regulatory
and Development Authority of India has also undertaken several initiatives aimed at increasing insurance
penetration in the country, such as launching standardized insurance products and authorizing insurance
companies to offer rewards for low-risk behavior. This has supported market growth overall.
The life insurance segment was the market's most lucrative in 2020, with total gross written premiums of $81.4bn,
equivalent to 75.2% of the market's overall value. The non-life insurance segment contributed gross written
premiums of $26.8bn in 2020, equating to 24.8% of the market's aggregate value.
Looking forwards, the market is likely to benefit from new government legislation aimed at boosting foreign direct
investment (FDI) across the insurance sector. Under the Union Budget 2021-2022, the Ministry of Finance has
proposed an amendment to the Insurance Act 1938 to increase the FDI limit in the insurance sector from the
current 49% to 74%, which would enable foreign ownership and control. Due to take effect in April 2021, these
changes are expected not only to encourage growth across the insurance market by offering greater selection for
potential policyholders, but also boost rivalry by encouraging market players to offer more competitive insurance
plans and thus attract more customers.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 3.8% for the five-year period
2020 - 2025, which is expected to drive the market to a value of $130.7bn by the end of 2025. Comparatively, the
South Korean and Chinese markets will grow with CAGRs of 3.6% and 4.5% respectively, over the same period, to
reach respective values of $226.1bn and $815.8bn in 2025.
The future of the pandemic remains uncertain, which makes it difficult to predict the long-term performance of
the insurance market. As India embarks on its vaccination program and businesses and industries resume normal
operations in the country as it opens up, consumer confidence is likely to improve, meaning that some consumers
may not feel as pressed to invest in insurance policies. However, interest rates are expected to remain low for
some time, constraining insurance companies’ profits. In addition, the reopening of society is likely to mean that
people will be leaving their homes more frequently for work and social activities, and travelling around using
transportation. This could bolster demand for property and motor insurance. As a result, the extent of disruption
to the market is difficult to gauge; however, it is already clear that insurers will need to adapt.
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3. Market Data
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4. Market Segmentation
Category 2020 %
Life Insurance 81.4 75.2%
Non-life Insurance 26.8 24.8%
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Geography 2020 %
China 655.9 37.6
Japan 410.5 23.6
South Korea 189.5 10.9
Taiwan 113.6 6.5
India 108.2 6.2
Rest Of Asia-pacific 264.6 15.2
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5. Market Outlook
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6.1. Summary
The degree of rivalry in the Indian insurance market is assessed as strong. Following three consecutive years of double-
digit growth between 2017 and 2019, the market slowed down to a more moderate pace in 2020 due to the impact of
the COVID-19 pandemic. This has intensified rivalry between leading players who must compete more fiercely to
expand their share of the market. High exit barriers and the number of companies operating in the market overall also
serve to increase competition.
Customer loyalty is low in this market, unless a long-term policy has been purchased. Buyers are willing to shop around
to get the best deal, often influenced by price sensitivity which is exacerbated by online price comparison tools.
Insurance companies attempt to improve retention rates by offering multi-car policies, combining different insurance
products, or offering other similar tailor-made services in order to differentiate their products.
Despite many insurance companies maintaining their own IT departments, it is unlikely a market player will backwards
integrate into ICT and software; however, it is common for an insurer to offer reinsurance products. Equally, ICT and
software houses are unlikely to forward integrate into insurance, although reinsurers often offer insurance products.
Government regulatory bodies are significant entry barriers for potential new entrants, as these bodies oversee the
insurance market and provide strict legislation dictating the legally expected behavior and actions of players.
There are no real substitutes for many insurance products as they are often a legal requirement. However, alternatives
include other financial products such as savings and investments.
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Buyer power is weakened in the insurance market due to the large number of individual customers that comprise the
consumer base, meaning that the impact of losing one customer is minimal to players. Equally, the volume of
customers means that customer diversity is significant, which in turn impacts bargaining power and financial strength.
Individual consumers or small to medium sized businesses have little sway when negotiating with insurers, and are
therefore generally forced to pay the price dictated by the market players. In contrast to this, larger corporations and
organizations such as government agencies have a far greater degree of influence. This boosts buyer power to some
extent. However, as individual customers and small to medium scale businesses account for the majority of the market,
this increased buyer power is offset.
Large businesses and organizations hold a greater deal of bargaining power with insurance companies compared to
individual buyers. As large businesses such as airlines and pharmaceutical companies pay increased premiums in
comparison to small businesses, insurance companies are more likely to lure these high-margin corporate clients,
usually through loyalty discounts. This in turn increases buyer power. Additionally, insurance brokers which act as
intermediaries for buyers, especially in the case of large companies, may be considered as buyers that dilute the power
of players in the market.
Brokers and other distributors have faced significant disruption in the form of price comparison websites, which offer
buyers a one-stop-shop for multiple insurance policies with a plethora of coverage options. Price comparison websites
have grown substantially. These price comparison websites offer products in every sector of insurance, which allows
individuals to compare and choose the most suitable insurance policy. The most popular websites for insurance
products in Singapore are the licindia.in, bajajfinserv.in and esic.in. However, regulators have to keep a close eye on
insurance sales and service standards overall on these sites to ensure transparency.
Insurance firms and brokers have created new online-only brands to compete on price, and to offer a lower cost service
to price-sensitive buyers.
Insurance is desirable for protection, especially for business customers who insure their companies against risks, with
many countries adopting legislation that makes business insurance mandatory, whether for public liability protection or
employee cover. Accordingly, non-life insurance products have lower dispensability than life insurance products.
Moreover, mandatory non-life insurance products such as motor insurance leads to inelastic demand, and thus to
reduced buyer power. Similarly, in April 2020 the Indian government made it mandatory for all employers to provide
employee medical insurance as a result of the COVID-19 pandemic. However, insurance products tend to have high
Industry Profiles
dispensability overall for individual consumers and the propensity to buy these products differs, based on personal risk
assessment and income.
High switching costs between players will be incurred by the buyer if they intend to terminate their policy after the
cooling off period (an exception is where a term policy reaches its end and the buyer chooses a different company for
their next policy). Particularly, pension and annuity life-insurance products have high switching costs because of their
guaranteed future payments based on accrued contributions. Hence, opting out of these insurance plans entails loss of
return from paid contributions through imposed penalties. In contrast, consumers can easily switch non-life insurance
plans which are written on a renewal basis. Overall, reasonably high switching costs act as a deterrent from
discontinuing a service, further reducing buyer power.
Customer loyalty is low in the insurance market, unless a long term policy has been purchased. Buyers are willing to
shop around to get the best deal, often influenced by price sensitivity. With online price comparison tools, and many
insurers offering price matching, buyer power is increased in respect to loyalty and price sensitivity. However, this is
stymied to some extent by the differentiation available with insurance. Companies may also attempt to increase buyer
loyalty through tailor made offers. For instance, ICICI Lombard, a leading player in the Indian non-life insurance market,
offers a Wellness Program in which any health insurance policyholders can access rewards and benefits for healthy
behavior. This may incentivize customers to purchase insurance from the company.
Insurers also generally offer price matching, which serves to increase buyer power both in respect to loyalty and price
sensitivity. This is stymied to some extent by the differentiation available with insurance. Insurers can change a number
of factors to differentiate their products including the level of excess, amount covered or additional services such as
legal fee cover which in turn reduces buyer power. Basic insurance is generally the same depending on the type of
insurance the buyer is looking for (e.g. motor insurance, home insurance or health cover), allowing buyers to base their
decisions on price, increasing their power. Backward integration is not possible for buyers, with the substitution of
insurance services being the only feasible method of overcoming players in this market.
Overall, buyer power is assessed as moderate.
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Suppliers in the insurance market include ICT companies, software houses and reinsurers. Many insurance companies
require specialized computer systems, tailored towards their unique range of products and services. Underwriters, for
instance, use computer applications known as "smart systems" to manage risks. These types of systems are complex
and are often linked up to an online database.
A secure and reliable ICT infrastructure is essential and companies are often reliant on one supplier – usually a large
and reputable company such as IBM. Such suppliers may have their own unique and patented systems. This creates a
disincentive for insurance companies to switch suppliers as many employers are reluctant to spend money training staff
on new systems, which increases supplier power. Additionally, software houses are able to offer customized software
tailored to meet insurers' specific needs. As a result, this degree of differentiation also serves to increase supplier
power.
Despite many insurance companies maintaining their own IT departments, it is extremely unlikely for a market player to
fully backwards integrate into ICT and software; however, it is fairly common for an insurer to offer reinsurance to
other companies. Equally, ICT and software houses are unlikely to forward integrate into insurance, although it is
common for reinsurers to offer insurance products.
Insurers require the services of reinsurance companies, which are usually large with augmented bargaining power, such
as Swiss Re and Munich Re, in order to reduce their own exposure to insured risks which are especially evident in non-
life insurance as it tends to be volatile in terms of insured losses. Although an insurance company can offer reinsurance
services and become a supplier itself, it cannot reinsure itself due to a conflict of interests. The necessity of this level of
risk mitigation for market players increases supplier power and by proxy increases the market player's own supplier
power. Reinsurance in the Indian market is not significant, with state-owned GIC Re accounting for more than 50% of
the Indian reinsurance market; this is in spite of deregulation that allowed the entry of large foreign reinsurers and the
awaited license approval of Lloyds of London, in addition to Hannover Re, Munich Re, Swiss Re and SCOR SE, which
have received approval to establish branches in India.
The size of suppliers, such as large-scale ICT companies like IBM and reinsurers like Swiss Re Group, increases supplier
strength due to their strong negotiating position. The moderately limited number of suppliers capable of providing
insurers with the services and equipment necessary also serves to consolidate supplier power to some extent, as does
prohibitive switching costs (the cost of switching an ICT supplier and/or software house can be particularly expensive).
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Consolidation within the ICT market in recent years has meant that many of the suppliers are large global giants, which
increases supplier power. For instance, in 2020 alone, IBM engaged in at least ten acquisitions and partnerships. This
includes the acquisition of India-based information technology services and solutions provider, Tech Mahindra Ltd, in
April 2020. The risk of further consolidation is further strengthening the position of suppliers.
Substitutes to traditional reinsurance include insurance-linked securities. Life insurance securitizations can be
advantageous over traditional reinsurance products, as they provide full collateralization for losses and they can be
issued for multiple years, for which prices can be locked, whereas the reinsurance market is highly cyclical. However,
they carry an inherent risk as if the stated parameters at the point of issuance prove to not hold up, they may not
receive the pay out in the event of a claim.
Reinsurance operations require a high level of proprietary knowledge, especially concerning risk modelling.
Additionally, reinsurers must be able to build and maintain an adequate capital base. Further investment will be
required for brand building, employing and training of staff, advertising, and so on. Government regulations can also be
stringent within this market, discouraging newcomers.
Overall supplier power is assessed as moderate.
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Figure 8: Factors influencing the likelihood of new entrants in the insurance market in India, 2020
Barriers to entry are often considered high due to the significant capital outlay required along with the strict regulatory
environment. Moreover, a strong capital base is essential for research and advertising expenditure, as specific market
knowledge, expertise and consumer recognition are key components for competing in this market.
Distribution channels such as insurance agents (captive or not), brokers or bancassurance are accessible but result in
squeezed profit margins for players through commission fees or reduced bargaining power. The traditional distribution
channels of insurance intermediaries are limited in India, similar to direct writing as insures in the market lag in
digitalization. However, the demonetization policy implemented in India in the last two years has enhanced financial
inclusion with bancassurance and online distribution channels increasing their penetration. Direct writing is the most
profitable distribution channel and that is associated with the penetration of online insurance services within a market.
In these regards, the growth of online insurance companies, which enjoy reduced costs means that there is a risk of
newcomers to the market.
Another threat for many insurance market players are other financial services companies entering the market – some
banks and investment banks have started to offer insurance products. For instance, the Central Bank of India has
undertaken selling and distributing Life Insurance and General insurance products through its branches via trusted
insurers. Similarly, in September 2020, ICICI Lombard partnered with retail and corporate banking provider Yes Bank to
deliver individual and group insurance solutions to Yes Bank customers. Given that banks are likely to opt for a trusted
and established insurance provider to offer insurance products, new entrants could be discouraged as they lack the
brand image to be selected for the bancassurance model.
Foreign-ownership restrictions apply in some companies in the Asia-Pacific region, including India. The foreign
ownership cap for non-life insurance in the country is currently capped at 74% and foreign investment in the market
must be approved by the Insurance Regulatory and Development Authority of India (IRDAI). If foreign insurers wish to
enter the market they may do so by forming a joint venture with an Indian company, and Indian residents must hold
ownership and control of the insurance company. As a result, players looking to expand into the Asia-Pacific market
may be more likely to select countries where foreign ownership caps do not exist, such as China or Indonesia.
Regulation of the market overall is fairly high, although it is not as heavily regulated as other financial services, such as
banking. Insurance companies operating in India are regulated and supervised by the IRDAI. Insurance firms cannot
engage both in the non-life and life insurance markets and insurance companies are also not allowed to engage in non-
insurance related activities. This complex regulatory background could discourage new entrants.
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The tax rates on insurance premiums within a country are also important factors affecting the pricing flexibility of
insurers. In India, general insurance services are subject to a general services tax of 18%, being increased over the last
two years.
Some countries may have lucrative insurance niche markets related to their unique characteristics. For instance, in
countries where the possibility of a natural disaster (earthquakes, floods, etc.) is higher, property insurance is quite
common. In this case, demand for insurance may be strong, but a higher risk of insurance claims for players is likely to
deter new entrants. Indeed, India is prone to natural disasters of floods. For instance, a series of deadly floods between
July and August 2019 caused property destruction and fatalities across nine states in India. Natural disasters can lead to
serious insurance losses, which may deter new entrants from entering this market.
The Indian non-life insurance market has seen strong double-digit growth overall in the historic period, bolstered by
emerging demand, increasing penetration, and government schemes promoting insurance uptake, such as the Pradhan
Mantri Fasal Bima Yojana (PMFBY), which is a government-sponsored crop insurance scheme which was launched in
2016. These favorable market conditions are likely to entice new entrants.
Ultimately, the likelihood of new entrants is assessed as moderate.
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Figure 9: Factors influencing the threat of substitutes in the insurance market in India, 2020
There are no real substitutes for some insurance products, such as motor insurance, as certain policies are a legal
requirement in many countries. However, there are a number of alternatives to taking out some insurance policies, for
instance other financial products such as savings and investments. Savings and investments include deposits, mutual
funds and direct investments in equities and bonds. Wills are also a way of accounting for risk and protecting family
members after death.
These options could be a cheaper alternative to insurance, but savings do not guarantee protection in the same way as
insurance, which reduces the benefit of this option. Specifically, returns from bank account savings are lower than that
offered from life/pension insurance schemes, while the cover of savings may not be sufficient. Additionally, other
investments of higher return involve risk and capital expenditure, in contrast to monthly installments for life/pension
insurance policies that usually have guaranteed returns. Consumers can adopt risk management strategies, such as
'Self-Insurance', whereby an eligible risk is retained, but a calculated amount of money is set aside. This is, however, a
much less secure option for consumers. An organization could choose to form its own insurance company subsidiary,
although this would require a certain amount of expertise and capital, furthermore the company would have to deal
with the quandaries of a conflict of interests.
Furthermore, substitutes to traditional reinsurance include catastrophe bonds and options. Catastrophe bonds and
options are advantageous over traditional reinsurance products, as they provide full collateralization for losses and they
can be issued for multiple years, for which prices can be locked, whereas the reinsurance market is highly cyclical.
However, they carry an inherent risk as if the stated parameters at the point of issuance prove to not hold up; they may
not receive the pay out in the event of a claim against a catastrophe.
The threat of substitutes with respect to the insurance market is therefore assessed as weak.
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Figure 10: Drivers of degree of rivalry in the insurance market in India, 2020
Leading players within the Indian insurance market include HDFC Standard, SBI Life, ICICI Prudential Life and New India.
The presence of large international incumbents, as well as the number of companies operating within the market,
increases the level of rivalry.
Rivalry in the Indian market has been alleviated by the strong market growth. Moreover, the high concentration of the
market gives a dictating power to leading players for transferring the rising cost of claims and reducing investment
income to consumers through increased premiums, a trend which is already visible in the non-life segment and that is
expected to be reproduced in the future due to lower investment income.
Consolidation has also been evident in recent years; HDFC ERGO Car Insurance and Max Life Insurance merged in 2016,
creating one of the largest private insurers in the market, HDFC Life, posing a threat to SBI Life which is the largest
private insurer at present. Further consolidation in the market could ease rivalry going forwards.
The diversification of services and the specialization of players in certain lines of insurance alleviate rivalry to an extent.
For instance, players in this market operate distinctively across segments as the regulation requires life and non-life
insurers operating separately. Moreover, two of the leading players in the market, ICICI and SBI are subsidiaries of
banking groups, which gives them an edge in bancassurance channels. Additionally, many large healthcare providers
are also engaged in the health insurance niche market, creating synergies. However, most of the players have similar
business models and offer similar services which leads to price sensitivity and low margins. Diversification is also
important on the grounds of minimizing risks and exposure to a specific market. Thus, large international players such
as Generali and AXA that are present in this market through joint ventures are less vulnerable to domestic market
shocks, with their competition capacity to be enhanced on the basis of improved capital strength.
Different competition dynamics exist across the various segments of the market, related to the lifespan, risks and
dispensability of these products. Specifically, the long lifespan of life insurance products leads to saturated demand
when the penetration of these dispensable products reaches a peak. Nevertheless, life insurers are not subject to
volatile insured losses. In contrast, insured losses can be vast and volatile for non-life insurers, intensifying competition
for new underwritings. On the one hand, the inelastic demand for certain indispensable non-life insurance products
alleviates rivalry, while the shorter lifespan of non-life insurance reduces the potential of demand saturation. On the
other hand, this shorter lifespan enhances switching by consumers, inducing competition. Overall, life insurers compete
over a higher return offered to the policyholder, whilst non-life insurers compete over lower premiums paid by the
policyholder.
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There are two streams of income for insurance firms. The first stream of income stems from core operations, in other
words, underwriting of policies. The second stream of income is produced by returns on invested premiums of written
policies. The latter makes insurance companies even more vulnerable to the macroeconomic environment, with the
monetary policy determining to an extent the terms of competition in the market. In detail, rivalry is alleviated through
increasing returns on investment, as in this case non-life insurers do not have to engage in premium increases
competing intensively over new underwritings. Accordingly, diminishing returns on investment through low interest
rates provokes rivalry and premium increases. Players with better price margins and stronger debt ratios (liabilities to
assets) will be better able to compete on price and gain market share. Similarly, life insurance products, particularly
pension/annuity schemes, are even more susceptible to these changes as the return for the policyholder is tied to the
investment return of the insurer. In other words, life insurance products become more or less attractive depending on
the interest rate environment, with the level of demand dictating rivalry. In these regards, the cut of interest rates in
India in recent years, the latest enacted in response to the economic uncertainty brought about by the COVID-19
pandemic, has reduced the investment yields of insurers leading to limited pricing flexibility with premium hikes
inevitable.
Entry barriers, though not insignificant, are lower than exit barriers. For example, the regulatory system, through the
imposition of such measures as capital adequacy, is designed to prevent insurers going out of business, as this would be
to the detriment of policyholders. The process of exiting the insurance market and offering some non-insurance
products is difficult. When exit barriers in a market are high, players may weather poor market conditions, which will
boost rivalry. In fact, in times of market downtrend, players take bigger risks to retain clients and that is unfavorable for
smaller and weaker players.
The COVID-19 outbreak is set to challenge insurance companies and increase rivalry in the long-run. While insurers
prepare for an increase in the cost of claims due to the coronavirus outbreak, there are concerns about their balance
sheets. In recent years, insurers have increased their risk exposure in pursuit of better returns by holding corporate
bonds. Some of these bonds are at risk of falling below investment grade. Record low central bank interest rates have
put further strain on fixed-income investments. Decisions made by senior managers since the onset of the outbreak
may come under scrutiny and lead to class action lawsuits according to Marsh. At present, the policy terms of the
Directors and Officers liability policies are narrowly defined for most products, which implies that COVID-19 triggered
lawsuits may not be exempt from coverage. Insurers may see an increase in claims due to the insured firm's insufficient
emergency protocols and resilience planning, lack of transparency that may impact the shareholders and corporate
mismanagement. Due to the ongoing nature of the outbreak, the extent of disruptions is difficult to gauge, however it is
already clear that insurers will need to adapt.
Overall, rivalry within the Indian insurance market is assessed as strong.
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7. Competitive Landscape
The Indian insurance market has performed well in recent years, growing with a CAGR of 9.9% between 2016 and
2020, despite a slowdown in 2020 due to the impact of the COVID-19 pandemic. This has alleviated rivalry
between players somewhat. The Indian market is fairly consolidated, with the top four leading players (SBI Life,
ICICI Prudential, HDFC Life Insurance Company, and Max Life Insurance) holding a cumulative 47.8% market share
in 2020. Given that life insurance comprises the market’s most lucrative segment, it is unsurprising that these
players are also the largest life insurance providers in the country. Leading players have gained a strong presence
in this market through a diversified product portfolio and the accumulation of awards and accolades, which have
strengthened their brand image and reputation. In addition, several players have engaged in M&A activity in order
to consolidate their market position and stamp out smaller competitors.
Company % Share
Sbi Life 15.8%
Icici Prudential 13.0%
Hdfc Standard 12.7%
Max Life 6.3%
Other 52.2%
Total 100%
SOURCE: MARKETLINE MARKETLINE
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reimagining insurance, and high quality board and management. In terms of market leading innovation, the company
has harnessed cutting-edge technology and its capabilities in obtaining customer feedback to develop new products
which meet evolving consumer trends in the market. For instance, recognizing the customer need for guaranteed
income, the company launched the HDFC Life Sanchay Plus product in FY 2018-2019, a non-linked savings insurance
plan which offers life cover, steady retirement income, guaranteed benefit payouts, and tax benefits. In FY 2019-2020
this product was upgraded to HDFC Life Sanchay Par Advantage, which offers a new cash bonus option to customers
from the first month of purchase. In addition, HDFC Life launched the Corona Kavach policy in response to the COVID19
outbreak, which is designed to pay for medical expenses arising from coronavirus infection. By staying ahead of market
trends and responding to evolving customer needs, HDFC is able to gain a competitive advantage in the market and
maximize its profits.
Max Life's significant solvency position showcases the company’s strong and stable financial position. It also indicates its
ability to cover claims, as well as help it to gain new business and raise capital to fund its business expansion plans.
According to the Insurance Regulatory and Development Authority of India (IRDAI), all insurance companies in the
country should maintain at least 150% as a solvency margin. Max Life reported a solvency margin of 202% in 2020,
which was 1.35 times more than the regulatory requirement.
7.5. What has been the rationale behind recent M&A activity?
Mergers, acquisitions, and partnerships in this market can be a lucrative way for leading players to enhance their
product portfolio, widen their customer/geographic networks, and consolidate their market share. In September 2020,
SBI Life signed a bancassurance agreement with Yes Bank Ltd, a provider of retail and corporate banking based in India.
As part of this partnership, SBI Life’s individual and group insurance solutions will be offered to Yes Bank’s customers
through its bank network of 1,000 branches across 29 states and seven union territories in India. This partnership is
likely to present a lucrative opportunity for SBI Life to reach a broader pool of potential customers, boosting the
company’s sale of life insurance plans and contributing to overall company growth.
Industry Profiles
not be exempt from coverage. Insurers may see an increase in claims due to the insured firm's insufficient emergency
protocols and resilience planning, and a lack of transparency that may impact the shareholders and corporate
mismanagement. Due to the ongoing nature of the outbreak, the extent of the disruption is difficult to gage; however,
it is already clear that insurers will need to adapt.
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8. Company Profiles
SBI Life Insurance Co Ltd (SBI Life) a subsidiary of State Bank of India, is an insurance company which offers life
insurance products and services. The company offers individual plans such as unit linked plans, child plans,
pension plans, protection plans, and savings plans. It offers group plans which include group employee benefit
retirement and protection plans. SBI Life Insurance also provides savings protection products, micro insurance
plans, group loan protection products, health plans, and banking product packages including housing loans and
personal loans. The company's services include premium calculator, child education planner, tax calculator,
easy plan finder, NRI services, SMS based services and premium payment procedure. SBI Life is headquartered
in Mumbai, Maharashtra, India.
The company reported revenues of (Rupee) INR819,127.8 million for the fiscal year ended March 2021
(FY2021), an increase of 87% over FY2020. In FY2021, the company’s operating margin was 2%, compared to an
operating margin of 4.1% in FY2020. In FY2021, the company recorded a net margin of 1.8%, compared to a net
margin of 3.2% in FY2020. The company reported revenues of INR256,357.1 million for the second quarter
ended September 2021, an increase of 60.2% over the previous quarter.
Head office: Turner Morrison Building 2nd Floor, 16, Bank Street, Fort, Mumbai, India
Telephone: 912261911000
Fax: 912261910338
Number of Employees: 17464
Website: www.sbilife.co.in
Financial year-end: March
SOURCE: COMPANY WEBSITE MARKETLINE
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Industry Profiles
ICICI Prudential Life Insurance Co Ltd (ICICI Prudential), a joint venture between ICICI Bank Ltd. and Prudential
Corporation Holdings Limited, is a provider of life insurance products. The company offers a wide range of
protection and savings products to individuals and group customers. It offers insurance plans for term life,
health, retirement, group life and rural. It also offers traditional savings/ money back plans, child education
insurance plans, critical illness insurance plans, and unit linked insurance plan. ICICI Prudential distributes
products and services through proprietary sales force, individual and corporate agents, brokers, banks and
online channels in India. ICICI Prudential is headquartered in Mumbai, India.The company reported gross
premium of INR357,330 million for the fiscal year ended March 2021 (FY2021), an increase of 6.9% over that in
FY2020. Its net earned premium was INR349,730 million in FY2021, an increase of 6.4% over that in FY2020.
The company reported revenues of (Rupee) INR832,319 million for the fiscal year ended March 2021 (FY2021),
compared to a revenue of INR210,620 million in FY2020. In FY2021, the company’s operating margin was 1.6%,
compared to an operating margin of 6.4% in FY2020. In FY2021, the company recorded a net margin of 1.1%,
compared to a net margin of 5.1% in FY2020. The company reported revenues of INR231,648.2 million for the
second quarter ended September 2021, an increase of 42.9% over the previous quarter.
Head office: Icici Prulife Towers 1089, Appasaheb Marathe Marg, Prabhadevi, Mumbai, India
Telephone: 912240391600
Fax: 912224376956
Number of Employees: 14413
Website: www.iciciprulife.com
Financial year-end: March
SOURCE: COMPANY WEBSITE MARKETLINE
ICICI Prudential Life Insurance Co Ltd (ICICI Prudential) provides a range of life insurance, health insurance and
pension products to individuals and corporate customers.
The company distributes products through individual agents, banks, proprietary sales force, corporate agents,
brokers, and online channels in India. It operates representative office in the UAE.
The company has three segments: Par, Non-Par and Linked.
Par segment offers par life and par pension insurance.
Non-Par segment offers non-par life, non-par pension, non-par variable, annuity and health insurance.
Linked segment provides linked life, linked pension, linked health, linked group life and linked group pension
insurance.
As of March 31, 2021, it operated through a network of 517 offices across 449 locations in India. It had about
187,560 advisors and market share of 7.2%. It also reported assets under management of INR2.14 trillion.
ICICI Prudential classifies its business into 13 segments: Par Life, Par Pension, Non Par Life, Non Par Pension, Non
Par Variable, Non Par Variable Pension, Annuity Non Par, Health, Linked Life, Linked Pension, Linked Health, Linked
Group Life, and Linked Group Pension.
Industry Profiles
Table 10: ICICI Prudential Life Insurance Co Ltd: Annual Financial Ratios
Key Ratios 2016 2017 2018 2019 2020
Growth Ratios
Sales Growth % 81.71 2.62 6.78 -49.21
Operating Income Growth % -10.62 16.89 -33.23 -1.73
EBITDA Growth % -9.77 15.57 -31.92 -1.40
Net Income Growth % 1.91 -3.72 -29.66 -6.32
EPS Growth % 1.24 -3.82 -29.86 13.80
Equity Ratios
EPS (Earnings per Share) INR 11.51 11.72 11.28 7.93 7.42
Dividend per Share INR 5.70 4.50 3.15 0.80
Dividend Cover Absolute 2.06 2.51 2.52 9.27
Book Value per Share INR 37.17 44.63 47.94 49.05 50.23
Profitability Ratios
Operating Margin % 9.47 4.66 5.31 3.32 6.42
Net Profit Margin % 7.92 4.44 4.17 2.75 5.07
PBT Margin (Profit Before Tax) % 8.84 4.92 4.74 3.07 5.69
Return on Equity % 31.00 26.25 23.53 16.17 14.79
Return on Capital Employed % 1.88 1.41 1.45 0.84 0.87
Return on Assets % 1.47 1.21 0.75 0.67
Operating Costs (% of Sales) % 90.53 95.34 94.69 96.68 93.58
Administration Costs (% of Sales) % 8.88 6.11 5.13 6.15 13.24
Leverage Ratios
Efficiency Ratios
Asset Turnover Absolute 0.33 0.29 0.27 0.13
Fixed Asset Turnover Absolute 195.25 130.51 95.91 45.64
Capital Employed Turnover Absolute 0.20 0.30 0.27 0.25 0.13
SOURCE: COMPANY FILINGS MARKETLINE
Industry Profiles
Industry Profiles
Max Life insurance Co Ltd (Max Life) is a joint venture company between Max India Limited, a multi-business
corporation, and Mitsui Sumitomo Insurance Co. Ltd., a member of MS&AD Insurance Group. The company
provides a range of life insurance products. It offers protection plans, child plans, retirement plans, growth
plans and savings plans. It also offers term insurance plans and group plans such as group term insurance plan
and group gratuity premier plan. The company markets and distributes its products to individuals and group
customers through a network of agent advisors, branch offices, MDRTs (million dollar round table) and trainers.
The company is headquartered in Gurugram, India.The company reported gross written premium of
INR161,836.5 million for the fiscal year ended March 2020 (FY2020), an increase of 11% over that in FY2019. Its
net earned premium was INR159,787.7 million in FY2020, an increase of 10.8% over that in FY2019.
Head office: 3rd 11th and 12th Floor, DLF Square Building, Jacaranda Marg, DLF City Phase II,
Gurugram, Haryana, India
Number of Employees: 12082
Website: www.maxlifeinsurance.com
Financial year-end: March
SOURCE: COMPANY WEBSITE MARKETLINE
Max Life insurance Co Ltd (Max Life) is a provider of individual and group life insurance products. The company
offers 16 individual products, five individual riders, five group products and four group riders. The company served
about 3 million through a network of 48,522 agent advisors and and had 269 offices.
In FY2020, the number of individual policies in force stood at 3.2 million.
The company’s operations are classified into three segments: Participating Policies (Non-Linked), Non-Participating
Policies (Non-Linked) and Linked Policies.
Industry Profiles
Industry Profiles
Industry Profiles
HDFC Life Insurance Co Ltd (HDFC Life) formerly known as HDFC Standard Life Insurance Co Ltd, a subsidiary of
Housing Development Finance Corporation Ltd, is a provider of life insurance products. The company offers a
range of group and individual life insurance solutions. It offers term insurance, unit linked insurance plans,
savings and investment plans, health plans, women and children’s plans and retirement plans. HDFC Life offers
these products and services to both individuals and corporate customers through its network of agents,
brokers, banks, and online and direct channels across India. HDFC Life is headquartered in Mumbai, India.The
company reported gross premium income of INR385,834.9 million for the fiscal year ended March 2021
(FY2021), an increase of 18% over that in FY2020. Its net premium income was INR381,223 million in FY2021,
an increase of 18.3% over that in FY2020.
The company reported revenues of (Rupee) INR518,842.6 million for the fiscal year ended March 2021
(FY2021), an increase of 22.3% over FY2020. In FY2021, the company’s operating margin was 2.8%, compared
to an operating margin of 2.6% in FY2020. In FY2021, the company recorded a net margin of 2.6%, compared to
a net margin of 3.1% in FY2020. The company reported revenues of INR205,975.1 million for the second
quarter ended September 2021, an increase of 39.1% over the previous quarter.
Head office: 12th & 13th Floor Lodha Excelus, Apollo, , Mumbai, India
Telephone: 912267516666
Fax: 912267516861
Number of Employees: 20636
Website: www.hdfclife.com
Financial year-end: March
SOURCE: COMPANY WEBSITE MARKETLINE
HDFC Life Insurance Co Ltd (HDFC Life) is an individual and group life insurance provider. The company provides a
range of protection, retirement, savings and investment, health, children, and group plans.
As of March 31, 2021, the company marketed and distributed its products through 390 branches and had
partnerships with more than 300 banks, MFIs, NBFC’s, SFB’s, and brokers.
HDFC Life classifies its operations into three business segments: Participating Funds, Non Participating Funds and
Unit Linked Funds.
Industry Profiles
Industry Profiles
Industry Profiles
9. Macroeconomic Indicators
Industry Profiles
Industry Profiles
Appendix
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
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analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
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and macroeconomic & demographic information, which enable our researchers to build an accurate market overview
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definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
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be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
Industry Profiles
Universal Insurance Building, 6th floor Sr. Pherozshah Mehta Road, Mumbai 400 1, IND
Tel.: 0091 22 2287 2923
Fax: 91 22 2287 3491
www.insuranceinstituteofindia.com
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Industry Profiles
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