Indian insurance industry has been seeing a steady uptick in the premium amount collected, both in the life as well as non life segment. In the life segment, since FY2013-14 the total premium collected has increased by 1.62x to Rs.5,08,132.03 crore in FY2018-19. During the same time premium collected in the non life segment has grown by 2.18x to Rs.1,69,448.46 crore. 

As of FY2018-19, life insurance penetration in India stands at 2.74% of the population and non-life insurance penetration is at 0.97%. This large, underserved market is an attractive investment opportunity. 

India’s burgeoning middle class, progressively young population and increasing awareness about financial well-being will drive the growth of the insurance industry. As part of Budget 2021-22, the government announced its intention to amend the Insurance Act, 1938 to increase the permissible FDI limit from 49% to 74% in Insurance Companies and allow foreign ownership and control with safeguards. This could lead to an expansion of the insurance sector, increasing its penetration, its level of competition, and value for customers in terms of better products at lower cost.

This smallcase comprises listed insurance companies to allow investors to efficiently track and invest in the insurance sector.