‘Insurance growth in India to slow down’

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Mumbai: Swiss Re, the largest reinsurnace company, has said that insurance in the emerging markets is expected to grow at a slower pace in 2008 and 2009, but its longer term growth prospects remain positive.

In India growth of new business in life insurance fell from 145.7% in 2006 to 9.6% in 2007. Annual growth is likely to drop from the 2002 to 2007 levels of 11.4% in life and 10.6% in non-life to 7-10% in life and 3-8% in non-life between 2008 and 2013, said the company its latest Sigma report. Growth in the life market slowed from 18% to 14% in 2007. Premium volume in 2007 amounted to $223billion. The strong performance of the stock markets in the first three quarters of 2007 led to increased sales of investment-linked life products.

The launch of new products and the increasing market share of bancassurance, the provision of insurance services by banks, also contributed significantly to the sector's results.