HONG KONG --(BUSINESS WIRE)-- India’s insurance industry is striving to improve its operating performance as profitability has been affected by price competition, the slowing economy and regulatory changes, this according to a special report by the A.M. Best Co. After more than a decade of robust growth in premium, the industry now faces challenges in terms of adequate pricing, distribution and cost efficiency. Nevertheless, the long-term picture is still compelling. Overall, India’s insurance market is poised for stable growth supported by the: Low insurance penetration; Rising middle-class income; and Population’s vast protection gaps for life and property risks. The public-sector units (PSUs) play a dominant role in India’s life and non-life insurance industry, armed with solid capital positions. However, losses arising from key lines of business mean that price rationalization and expense control are critical to the industry’s positive development. Looking ahead, life and non-life businesses—which are bracing for more transition and challenges to growth—are trying to build profit during this sluggish economic period and cope with: Persistent high claims ratios; Underwriting losses in the non-life sector; Falling new business in the life sector; and Regulatory change in the life sector. Life premiums represent the majority of India’s insurance business, accounting for almost 85% of consolidated gross premiums written in India in 2012. And although the remaining—and relatively small—share of premiums written is non-life business, it has been the industry’s main concern in recent years due to its lack of profitability. To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=220595 . A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com . Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. A.M. Best Company Roy Lee , +852-2827-3418 Financial Analyst firstname.lastname@example.org or Rachelle Morrow , +(1) 908-439-2200, ext. 5378 Senior Manager, Public Relations email@example.com or Jim Peavy , +(1) 908-439-2200, ext. 5644 Assistant Vice President, Public Relations firstname.lastname@example.org Source: A.M. Best Company
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