‘Insurance to develop at 3-4% in next 3 years'

The insurance industry is projected to grow at three to 4(%) per cent in the next three to four years, according to Mr Rajesh Sud, Managing Director and Chief Executive Officer, Max New York Life.
He said, At present, the insurance division contributes to 4(%) per cent of the GDP in India, while in developed countries, it is as high as eight to 10(%) per cent.
He said. “According to our estimates, there are around 12 crore households who can come under the cover of life insurance. Around 28(%) per cent penetration is there, which means there is still wonderful scope for the industry to grow.”
Life insurance companies sold 3.82 crore new policies up to January 2010 against 3.62 crore in the corresponding period last year, according to Mr S.B. Mathur, Secretary-General, Life Insurance Council. “New business premium grew by 15.32(%) per cent year-on-year to Rs 75,347 crore from Rs 65,337 crore. Private companies also showed a positive growth and collected new business premium of Rs 26,327.81 crore up to January 2010.”