Emkay Global Financial Services has come up with a report on the growth prospects for the life insurance companies in the listed space. The analysis period is from 2020-2030.
The favourable underlying demand factors for life insurance will lead to an overall premiums growth of 15% annually for the next decade, leading to 4x increase in total life insurance premiums to Rs. 24 lakh crore by FY31.
In FY01-11, premiums had grown at a surprising 24% CAGR and then followed with an anaemic 8% CAGR in the next 10 years. However, Emkay Global is now more confident of growth in the future due to a number of underlying factors.
India has one of the highest and fastest growing Mortality protection and Retirement funding gaps in the world. India’s mortality protection gap stands at $16.5tn and is compounding at ~7% over 2020-30E, but accounts for only 83% of what is needed.
