Post
neerajb
Investment Ideas
Industry Analysis (10/10)
Insurance Industry🏥🚗
The Indian Insurance market is valued at over $131 Bn as of FY 22, it has grown by over 17% CAGR in the last two decades. The Insurance industry in India has 58+ companies, 24 Life insurance and 34 Non-life insurance companies, LIC being the sole Public sector Life insurance company. This industry has witnessed huge growth driven by private sector participation and improved distribution capabilities.
🌟 Cyclicity: The insurance industry is Non-Cyclical, as the demand for insurance
(life and non-life) has remained fairly consistent in the last decade despite
economic turnarounds.
🌟 Value Chain:
➡️ Product Development (Policy framework, Risk assessment and pricing)
➡️ Marketing and Sales (Customer acquisition, Promotion & Advertising)
➡️ Claim Management (Prevention, Mitigation, Investigation, Disbursement)
➡️ Asset Management (Investments, Portfolio Management)
🌟 Revenue Drivers:
➡️ Insurance Premiums
➡️ Investment Returns (Dividends, Bonus etc.)
🌟 Cost Drivers:
➡️ Fixed: License, Salaries, Office Infrastructure
➡️ Variable: Claims, Agent Commissions, Service costs
🌟 Growth Drivers:
➡️ Awareness of Insurance products
➡️ Digital penetration (Importance of Insurance)
➡️ Rising Disposable Income
🌟 Key Market players:
Industry Segmentation
🔻 Life Insurance (75%)
🔻 Health Insurance (8%)
🔻 General Insurance (17%)
Public Awareness for Insurance has improved a lot in the past 2 years, owing to the Covid pandemic. Insurance is now being sold completely online and companies like Policy bazaar, Ditto and Acko actively invest in marketing to improve their sales.
Sep 24 11:32 AM
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