The life insurance industry has seen significant growth in the past ten years, with the introduction of a wide range of advanced insurance products and services. India’s life insurance industry has been growing at a steady pace. Out of the 52 insurance companies operating in India, 24 are in the life insurance business, and 28 companies are in the non-life insurance segment.

According to research by a leading market research company, the life insurance market in India was valued at INR 4,185 Bn in FY 2017 and is likely to expand at a compound annual growth rate (CAGR) of ~11.6% during FY 2018 to FY 2023.

Millennials are significant to the life insurance market in India:

The large millennial population will cause a shift in the industry. The industry will adapt itself to fit with the needs and demands of this demographic. Studies have shown that millennials are more curious and financially savvy than their parents. They are more open to adopting life insurance. Millennial are seen to conduct research independently and get in touch with life insurance providers via online platforms. The growth in the demand for life insurance in India can be attributed to the go-getter attitude of the millennial generation.

The digital generation has made it clear that they like to consume content online. Several companies have changed their method of marketing and sales to adapt to the ways of the millennial generation. Beyond their static website, companies are looking to engage consumers with AI-enabled chat-bots. The chat-bot can have conversations with the user and gain information about the user’s needs, after which it will recommend the right life insurance. The industry is also focussing on creating educational content so that millennials can understand the working of the industry better.

The shift in India’s demography, digitalization and financialization are some of the major trends that will take the Life insurance market in India forward.