Insurance sector may touch Rs 2 lakh cr by 2011: Assocham

The insurance sector is likely to grow by 200 per cent to touch the figure of Rs 2,00,000 crore in the next two years, industry body Assocham said today.      

Out of this, private insurance business would grow at a rate of 140 per cent in view of aggressive marketing technique adopted by them against 35-40 per cent of state-owned insurance companies growth rate," the chamber said.      

"It is expected that the total insurance business may reach a level of Rs 2,000 billion in the next two years from current level of Rs 500 billion," it said.      

In the last couple of years, the insurance sector has grown by a compounded annual growth rate (CAGR) of around 175 per cent, it said adding that the trend would emerge still better because of potential factor.      

“On account of intense marketing strategies adopted by private insurance players, the market share of state owned insurance companies like GIC, LIC and others have already come down to 70 per cent in last 4-5 years," Assocham President Sajjan Jindal said.      

The rate of return of private players to their subscribers and policy holders is estimated at about 35 per cent against that of 20 per cent of government insurance companies.