MR Microinsurance_2012_03_29.indd - International Labour ...

432 Insurers and microinsurance
78 per cent market share, primarily covering agriculture, livestock and health
risks. Th e fi ve largest private insurers together had 16 per cent of the market. Th e
remaining 14 general insurance companies generated only 6 per cent of the
US$1.3 billion premiums of the rural and social sector (see Figure 20.1). Yet, the
private insurers’ market share has grown steadily from just under 12 per cent
(approximately 4 million risks covered) in 2004–05 to 22 per cent (approximately
13 million risks covered) in 2009–10, indicating that private players are undertaking
more rural business even though they lack the rural infrastructure of the
public insurers.
Figure 20.1 Total rural and social sector premiums for general insurers (2009–10)
Source: Micro Insurance Map, 2011.
20.1.2 Life insurance companies
Other private insurance companies
6%
5 Largest private insurance companies
16% 16%
Public insurance companies
78%
Life insurance premiums in the rural sector amounted to 2.5 per cent (US$1.5
billion) of the US$59 billion of total life premiums in 2009–10. Only one life
insurer did not achieve its rural and social mandate, while fi ve exceeded their
targets.
As the oldest and largest player, Life Insurance Corporation (LIC), India’s
only public life insurer, has approximately 76 per cent of the overall life insurance
market. LIC is required by the regulators to maintain a special rural target
of 25 per cent of its total annual lives insured. In 2009–10 it accounted for 95 per
cent of all life microinsurance premiums, attributed to its early market entry, its
army of individual agents and more recently, exclusive access to state-subsidized
microinsurance products. LIC’s deep rural market outreach is rivalled only by
the Rural Postal Life Insurance (RPLI) products of the Department of Posts,