Life Insurance Industry is on high Growth since the last 2 decades after the entry of private players. TOP 7 Private Players has 75% private market share, i.e. strong Bancassurance platform will dominate the market. This is also the growing and emerging industry of India. Can have one company in the portfolio from either Insurance or AMC as both of this industry depend on savings and GDP/Capita.
Penetration in India is just 2.8% along with Density of 3840 Rs is too less v/s other countries. The protection Gap is 92%. Both China and India are Under-Insured countries. Growth opportunity is there as Life Expectancy would grow from current 68 to 75 during the next 2-3 decades along with Young population growth. Insurance Companies with widespread banking are able to grow better as today around 55% of Business is sourced from Bank channels. Even E-commerce & Direct channels are on High growth. Activation is also maintained well through all channels.
HDFC Life & SBI Life are leading companies in Insurance, along with ICICI PRU. All these 3 companies have average same Business & profits. Margin of Hdfclife and SBI are better.
Even in the current Muted Economy Premium income has grown around 18% which shows continuous demand. Profits this year has been affected due to high death ratio this year. Overall, Insurance is the growing sector.