The Indian Insurance Industry was the domain of the Public sector undertakings (PSU= State owned enterprises) until the late 90’s. In the last 10years the private insurance players have grabbed approx 50% of the market share of a highly regulated industry, intensifying the competition.
The private players are at a vantage point to benefit from the growing saving pie due to their ability to expand their networks and pay high acquisition costs. Having said that, since the industry is now being de-tariff (free Pricing) effective management of costs (acquisition and network) becomes more relevant specially in adverse economic conditions. With the industry emerging into profitability in a highly competitive market with untapped exponential growth potential, Operating effectiveness, growth strategies and customer satisfaction is critical for sustainability of profits and growth rates.
Product innovation also poses a challenge especially in a competitive and challenging environment.
PricewaterhouseCoopers is a global industry leader, both in the professional services space, and as a provider of Audit, Tax and Advisory services to the insurance industry. We also have advised and assisted many foreign insurance players enter this market starting from formalizing an effective entry strategy to walking them through the regulatory compliance processes. We are committed to working with clients, regulators and other industry stakeholders to enhance the financial and professional performance of the insurance sector.