Monopoly to oligopoly: Here's a look at 20-year journey of insurance sector

As many as 50 players have set up shop but penetration remains low and only a handful dominate the business

Twenty years after India’s insurance sector was opened up, unshackling the control of state-owned companies, as many as 50 private players have set up shop. Along with their foreign partners, private players have brought about a sea change in the product offering, distribution and underwriting processes, and services levels.

Yet, India’s insurance penetration needle has not moved much (see chart). The reasons for this include lack of financial literacy, affordability of premiums, complex products, skewed distribution and, to an extent, customers seeing insurance as a tax-saving/savings instrument. “The primary reason is a lack of awareness among consumers on the importance