Insurance sector to touch Rs 2,00,000 cr by 2010: Assocham

NEW
DELHI: Riding on the dorsum of new participants and increasing penetration, the
insurance sector is expected to traverse the Rs 2,00,000 crore grade in concern by
2010, a survey by industry organic structure Assocham said on Monday. At present, size of the
insurance sector is estimated at Rs 50,000 crore, which have seen a Compound
Annual Growth Rate (CAGR) of around 175 per cent in the last few years, the
study named 'Insurance in Next Two Years' stated. The coverage sector, both
life and non-life, is likely to turn by over 200 per cent, and private insurers
are expected to accomplish a growing charge per unit of 140 per cent as a consequence of aggressive
marketing technique, it said. The growing of state-owned
insurance companies is likely to be 35-40 per cent. "On business relationship of intense
marketing schemes adopted by private coverage players, the marketplace share of
state-owned insurance companies like GIC, LIC and others have come up down to 70 per
cent in last 4-5 old age from over 97 per cent," Assocham President Venugopal
Dhoot said. The survey said
private coverage companies would further follow aggressive selling techniques. Despite regulation, the private participants are offering 35 per cent charge per unit of return
to its policy holders against 20 per cent by public-sector insurers. This factor is mainly
responsible for a tramp in private coverage marketplace share that volition turn further,
it said.