Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018

Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Market Intelligence Report Reference code: IS0706MR Published: October 2014 www.timetric.com Timetric John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0)20 7936 6400 Fax: +44 (0)20 7336 6813 www.timetric.com

1 Key Facts and Events Key Facts Table 1: Indian Personal Accident and Heath Insurance Key Facts, 2013 Population (billion) Gross written premium (INR billion) Direct written premium (INR billion) Earned premium (INR billion) Paid claims (INR billion) Insurance penetration (%) Loss ratio (%) Combined ratio (%) Inflation rate (%) Source: Timetric analysis Timetric Key Events in the Indian Personal Accident and Health Insurance Segment The Insurance Regulatory and Development Authority (IRDA) Insurance Information Bureau (IIB) has created a database which contains a registry of healthcare providers in India; with each one allocated a unique identity. Through this databas e, the regulator plans to build its analytical ability to evaluate inflation on medical costs, fraud, and epidemic detection. In July 2014, the Cabinet Committee on Economic Affairs (CCEA) approved an increase in the foreign direct investment (FDI) limit in the Indian insurance industry from 26% to 49%. The increased is currently awaiting parliamentary approval. In 2014, information technology (IT) services, emerged as the largest segment in terms of spending in the Indian insurance industry, with a value of INR40.0 billion (US$603.1 million);it is projected to grow at a CAGR of 16% over the forecast period. The leading categories in the IT segment are business process outsourcing (BPO) and consulting, which contributed 25% and 21% respectively. In 2014, Star Health launched a diabetes insurance policy called Star Diabetes Safe in association with Allied Insurance Co Ltd. On April 19, 2014, Indian insurers launched various awareness initiatives for Insurance Awareness Day. April 19 was designated as Insurance day by the IRDA, as the sector s formal regulator was appointed on that day. The IRDA plans to collaborate with firms through the BimaBemisaal campaign to raise consumer awareness of the significance of insurance. The IRDA issued guidelines on standardization in the health insurance category in 2013. The regulations aim to harmonize requirements for health insurance, with standardized definitions, agreement formats, commonly used terms and formats. Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 2

2 Executive Summary The Indian personal accident and health insurance segment posted significant growth during the review period. The segment s gross written premium increased at a review-period (2009 2013) compound annual growth rate (CAGR) of 21.1%, despite the global financial crisis. The robust growth was driven by increasing healthcare expenditure, favorable government initiatives for large-scale health insurance programs, and the liberalization of industry regulations. Despite the increase, penetration remains low due to a lack of consumer awareness of personal accident and health insurance especially in rural areas, a lack of cover for many diseases, and dependence on sales of products with attached tax benefits. Increase in FDI cap and upcoming regulations to build international base for insurers In July 2013, the IRDA proposed an increase in the FDI limit from 26% to 49% in order to improve, promote and develop the domestic insurance industry. The CCEA approved the increase in July 2014, which is now awaiting parliamentary approval. The increased FDI cap is expected to encourage global insurers to invest in the segment, intensifying competition over the forecast period. The regulator has also proposed solvency margin amendments to the government, and also appointed a committee to advise on risk-based capital (RBC) standards implementation equivalent to Solvency II, which are being implemented around the world. These upcoming changes in the industry are expected to increase insurers efficiency and give them global exposure. Rising pharmaceuticals industry and health reforms to promote health insurance The Indian pharmaceuticals industry is expanding at 8 9% per annum, and is expected to be among the world s 10 leading pharmaceutical industries by 2017. Consequently, public awareness of diseases has increased and the need for cover is being increasingly recognized. This is expected to cont ribute to the growth of the health insurance category over the forecast period (2013 2018). Growing travel industry to drive demand for travel insurance The number of international travelers from India increased from 11.1 million in 2009 to 14.9 million in 2012, at a CAGR of 10.5%. This was largely responsible for the growth of travel insurance in India during the review period. Domestic travelers are also taking out travel insurance. The tourism sector is expected to grow at a forecast-period CAGR of 14.1%, leading to growth in the travel insurance category. Increasing awareness of road accidents contributing to accident insurance Accident rates in India have increased substantially, with poor road infrastructure and a rise in the number of drink-driving cases rises. According to statistics from the Ministry of Road Transport and Highways, the total number road accidents was 486,476 in 2013, and the number of people killed in road accidents stood at 137,572. According to the first ever Global Status report on road safety, published by World Health Organization (WHO) in the year 2009, India recorded the highest number of road accident deaths in the world. Along with numerous precautionary traffic control measures and awareness programs, the need for accident cover is also rising. Rapid urbanization a slow rate of infrastructure development are expected to contribute to the growth of the personal accident and health segment over the forecast period. Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 3

2.1 Key Findings 2.2 Reasons to Buy The personal accident and health segment accounted for 5.2% of the overall insurance industry s gross written premium in 2013 During the review period (2009 2013) Indian personal accident and health insurance segment recorded a CAGR of 21.1%. Healthcare was one of the fastest-growing categories in India with a review-period CAGR of 22.0%, but a substantial proportion of the population is still unaware of health insurance, especially in rural areas. In July 2013, the IRDA proposed an increase in the FDI limit from 26% to 49% in order to improve, promote and develop the domestic insurance industry, which was approved by the CCEA in July 2014. The increased cap is anticipated to attract global insurers to invest in the segment, intensifying competition over the forecast period. Health insurers used numerous prominent platforms such as print media and television, as well as organizing free health camps, to raise awareness of health insurance during the review period. Make strategic business decisions using in depth historic and forecast market data related to Indian personal accident and health insurance segment and each category within it Understand the demand-side dynamics, key market trends and growth opportunities within Indian personal accident and health insurance segment Assess the competitive dynamics in the personal accident and health insurance segment, along with the reinsurance segment Identify the growth opportunities and market dynamics within key product categories Gain insights into key regulations governing Indian insurance seg ment and its impact on companies and the market's future Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 4

3 Indian Insurance Industry Attractiveness 3.1 Insurance Industry Size, 2009 2018 Figure 1: Indian Insurance Industry Gross Written Premium by Segment (INR Billion), 2009 2018 Source: IRDA, India and Timetric analysis Timetric Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 5

Table 2: Indian Insurance Industry Gross Written Premium by Segment (Percentage Share), 2009 2018 Segment 2009 2013 2018 Life Non-life Personal accident and health Overall 100.0% 100.0% 100.0% Source: IRDA, India and Timetric analysis Timetric Figure 2: Indian Insurance Industry Gross Written Premium Dynamics by Segment, (2009 2018) Source: IRDA, India and Timetric analysis Timetric Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 6

INR Billion 4 Personal Accident and Health Insurance Outlook 4.1 Personal Accident and Health Insurance Growth Prospects by Category Figure 1: Indian Personal Accident and Health Insurance Gross Written Premium by Category (INR Billion), 2009 2018 600 Health Personal accident Travel 500 400 300 200 100 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: IRDA, India and Timetric analysis Timetric Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 7

Figure 2: Indian Personal Accident and Health Insurance Gross Written Premium by Category (% Share), 2013 and 2018 Health Personal accident Travel Source: IRDA, India and Timetric analysis Inner Circle 2013 Outer Circle 2018 Timetric Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 8

5 Methodology All Timetric insurance reports are created by following a comprehensive, four-stage methodology. This includes market study, research, analysis and quality control. 1) Market Study A. Standardization Definitions are specified using recognized industry classifications. The same definition is used for every country. Annual average currency exchange rates are used for the latest completed year. These are then applied across both the historical and forecast data to remove exchang e rate fluctuations. B. Internal audit Review of in-house databases to gather existing data: Historic market databases and reports Company database C. Trend monitoring Review of the latest insurance companies and industry trends 2) Research A. Source s Collection of the latest market-specific data from a wide variety of industry sources: Government statistics Industry associations Company filings International organizations Insurance regulatory agencies B. Expert opinion Collation of opinion taken from leading insurance industry experts Analysis of third-party opinion and forecasts: Broker reports Media Official government sources C. Data consolidation and verification Consolidation of data and opinion to create historical datasets Creation of models to benchmark data across sectors and regions 3) Analysis A. Market forecasts Feeding forecast data into market models: Macroeconomic indicators Industry-specific drivers Analysis of insurance industry database to identify trends: Latest insurance trends Key drivers of the insurance industry Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 9

B. Report writing Analysis of market data Discussion of company and industry trends and issues Review of financial deals and insurance trends 4) Quality Control Templates Detailed process manuals Standardized report templates and accompanying style guides Complex forecasting tools to ensure that forecast methodologies are consistently applied Quality-control checklists Quality-control proce ss Peer review Senior-level QC Random spot checks on data integrity Benchmark checks across databases Market data cross-checked for consistency with accumulated data from: Company filings Government sources 5.1 Related Reports Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Personal Accident and Health Insurance in Indonesia, Key Trends and Opportunities to 2018 Personal Accident and Health Insurance in Colombia, Key Trends and Opportunities to 2018 Personal Accident and Health Insurance in Russia, Key Trends and Opportunities to 2018 Personal Accident and Health Insurance in Mexico, Key Trends and Opportunities to 2018 Personal Accident and Health Insurance in Argentina, Key Trends and Opportunities to 2018 Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 10

TABLE OF CONTENTS 1 Key Facts and Events... 2 2 Executive Summary... 3 3 Introduction... 12 3.1 What is this Report About?...12 3.2 Definitions...12 3.3 Methodology...14 4 Indian Insurance Industry Attractiveness... 16 4.1 Insurance Industry Size, 2009 2018...18 4.2 Regional Benchmarking...22 4.2.1 Overview... 22 4.2.2 Market trends... 24 4.2.3 Scale and penetration... 27 4.2.4 Total segment gross written premium... 27 5 Personal Accident and Health Insurance Segment Outlook... 28 5.1 Consumer Segmentation...30 5.2 Key Drivers...33 5.3 Key Trends...35 5.4 Challenges...36 5.5 Personal Accident and Health Insurance Growth Prospects by Category...37 5.5.1 Personal accident insurance... 57 5.5.2 Travel insurance... 60 5.5.3 Health insurance... 63 6 Analysis by Distribution Channel... 68 6.1 Direct Marketing...71 6.2 Bancassurance...75 6.3 Agencies...79 6.4 E-commerce...83 6.5 Brokers...87 6.6 Other Channels...91 7 Governance, Risk and Compliance... 95 7.1 Legislation Overview and Historical Evolution...96 7.2 Legislation Trends by Type of Insurance...99 7.2.1 Life insurance regulatory trends... 100 7.2.2 Property insurance regulatory trends... 103 7.2.3 Motor insurance regulatory trends... 106 7.2.4 Marine, aviation and transit insurance regulatory trends... 108 7.2.5 Personal accident and health insurance regulatory trends... 108 7.3 Compulsory Insurance...110 Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 11

7.3.1 Motor third-party liability insurance... 110 7.3.2 Workmen's compensation insurance/employers liability insurance... 112 7.4 Supervision and Control...113 7.4.1 International Association of Insurance Supervisors... 113 7.4.2 Insurance Regulatory and Development Authority... 114 7.5 Non-Admitted Insurance Regulatory Trends...115 7.5.1 Overview... 115 7.5.2 Intermediaries... 116 7.5.3 Market practices... 116 7.5.4 Fines and penalties... 116 7.6 Company Registration and Operations...117 7.6.1 Types of insurance organization... 118 7.6.2 Establishing a local company... 118 7.6.3 Foreign ownership... 119 7.6.4 Types of license... 120 7.6.5 Capital requirements... 120 7.6.6 Solvency margins... 121 7.6.7 Reserve requirements... 123 7.6.8 Investment regulations... 123 7.6.9 Statutory return requirements... 125 7.6.10 Fee structure... 126 7.7 Taxation...127 7.7.1 Insurance premium or policy taxation... 127 7.7.2 Corporate tax... 127 7.7.3 VAT... 128 7.7.4 Captives... 129 7.8 Legal System...130 7.8.1 Introduction... 130 7.8.2 Access to court... 131 7.8.3 Alternative dispute resolution (ADR)... 133 8 Competitive Landscape and Strategic Insights... 135 8.1 Overview...135 8.2 Leading Companies in Indian Personal Accident and Health Insurance Segment...136 8.3 Comparison of the Top Five Insurers...137 8.3.1 Gross written premium... 137 8.3.2 Net earned premium... 138 8.3.3 Paid claims... 139 8.3.4 Incurred loss... 140 8.4 Leading Personal accident and health Insurers New Product Launches...141 8.5 Leading Personal accident and health Insurers Key Developments...144 8.6 New India Assurance Co. Ltd Company Overview...146 8.6.1 New India Assurance Co. Ltd key facts... 146 Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 12

8.6.2 New India Assurance Co. Ltd key financials... 146 8.7 United India Insurance Co. Ltd Company Overview...147 8.7.1 United India Insurance Co. Ltd key facts... 147 8.7.2 United India Insurance Co. Ltd key financials... 147 8.8 National Insurance Co. Ltd Company Overview...148 8.8.1 National Insurance Co. Ltd key facts... 148 8.8.2 National Insurance Co. Ltd key financials... 148 8.9 ICICI Lombard General Insurance Co. Ltd company overview...149 8.9.1 ICICI Lombard General Insurance Co. Ltd key facts... 149 8.9.2 ICICI Lombard General Insurance Co. Ltd key financials... 149 8.10 Oriental Insurance Company Ltd Company Overview...150 8.10.1 Oriental Insurance Company Ltd key facts... 150 8.10.2 Oriental Insurance Company Ltd key financials... 150 8.11 Star Health and Allied Insurance Co. Ltd Company Overview...151 8.11.1 Star Health & Allied Insurance Co. Ltd key facts... 151 8.11.2 Star Health & Allied Insurance Co. Ltd key financials... 151 8.12 HDFC Ergo General Insurance Company Ltd Company Overview...152 8.12.1 HDFC Ergo General Insurance Company Ltd key facts... 152 8.12.2 HDFC Ergo General Insurance Company Ltd key financials... 152 8.13 Bajaj Allianz General Insurance Co. Ltd Company Overview...153 8.13.1 Bajaj Allianz General Insurance Co. Ltd key facts... 153 8.13.2 Bajaj Allianz General Insurance Co. Ltd key financials... 153 8.14 Apollo Munich Health Insurance Company Ltd Company Overview...154 8.14.1 Apollo Munich Health Insurance Company Ltd key facts... 154 8.14.2 Apollo Munich Health Insurance Company Ltd key financials... 154 8.15 Reliance General Insurance Company Ltd Company Overview...155 8.15.1 Reliance General Insurance Company Ltd key facts... 155 8.15.2 Reliance General Insurance Company Ltd key financials... 155 9 Appendix 1... 156 9.1 Market Capitalization Trend Bombay Stock Exchange, India...156 9.2 GDP at Constant Prices (US$)...157 9.3 GDP per Capita at Constant Prices (US$)...158 9.4 GDP at Current Prices (US$)...159 9.5 GDP per Capita at Current Prices (US$)...160 9.6 Inflation Rate...161 9.7 Unemployment Rate...162 9.8 Household Consumption Expenditure (US$)...163 9.9 Total Population...164 9.10 Urban and Rural Populations...165 9.11 Age Distribution of the Total Population...166 10 Appendix 2... 167 Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 13

10.1 Methodology...167 10.2 Contact Timetric...167 10.3 About Timetric...167 10.4 Timetric s Services...168 10.5 Disclaimer...169 Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 14

LIST OF FIGURES Figure 1: Indian Insurance Industry Gross Written Premium by Segment (INR Billion), 2009 2018... 18 Figure 2: Indian Insurance Industry Gross Written Premium Dynamics by Segment, (2009 2018)... 19 Figure 3: Indian Insurance Industry Direct Written Premium by Segment (INR Billion), 2009 2018... 20 Figure 4: Indian Insurance Industry Direct Written Premium Dynamics by Segment (2009 2018)... 21 Figure 5: BRICS Region A Snapshot of the Economies and Populations, 2011... 23 Figure 6: BRICS Region Grow th Trends in the Insurance Industry... 24 Figure 7: BRICS Region GDP at Constant Prices (US$ Trillion) and Annual Per Capita Disposable Income (US$), 2007 and 2011... 25 Figure 8: BRICS Region Health Expenditure Per Capita (US$), 2007 and 2011... 26 Figure 9: BRICS Personal Accident and Health Insurance Gross Written Premiums (US$ Billion), 2011... 27 Figure 10: Gross Written Premium and Health Expenditure Statistics, 2008 2012... 30 Figure 11: Distribution of Employment by Sector (%), 2010 2012... 31 Figure 12: Population Distribution by Gender and Age Group... 31 Figure 13: Rural and Urban Populations (%) and Outbound Tourism (Million), 2009 2013... 32 Figure 14: Indian Personal Accident and Health Insurance Gross Written Premium by Category (INR Billion), 2009 2018... 37 Figure 15: Indian Personal Accident and Health Insurance Gross Written Premium by Category (% Share), 2013 and 2018... 38 Figure 16: Indian Personal Accident and Health Insurance Direct Written Premium by Category (INR Billion), 2009 2018... 39 Figure 17: Indian Personal Accident and Health Insurance Direct Written Premium by Category (% Share), 2013 and 2018... 40 Figure 18: Indian Personal Accident and Health Insurance Earned Premium (INR Billion), 2009 2013... 41 Figure 19: Indian Personal Accident and Health Insurance Earned Premium (INR Billion), 2013 2018... 41 Figure 20: Indian Personal Accident and Health Insurance Paid Claims by Category (INR Billion), 2009 2018... 42 Figure 21: Indian Personal Accident and Health Insurance Incurred Loss by Category (INR Billion), 2009 2018... 43 Figure 22: Indian Personal Accident and Health Insurance Retentions by Category (INR Billion), 2009 2018... 44 Figure 23: Indian Personal Accident and Health Insurance Loss Ratio (%), 2009 2013... 45 Figure 24: Indian Personal Accident and Health Insurance Loss Ratio (%), 2013 2018... 45 Figure 25: Indian Personal Accident and Health Insurance Commission and Expenses (INR Billion), 2009 2013... 46 Figure 26: Indian Personal Accident and Health Insurance Commission and Expenses (INR Billion), 2013 2018... 46 Figure 27: Indian Personal Accident and Health Insurance Combined Ratio (%), 2009 2013... 47 Figure 28: Indian Personal Accident and Health Insurance Combined Ratio (%), 2013 2018... 47 Figure 29: Indian Personal Accident and Health Insurance Frauds and Crimes (INR Billion), 2009 2013... 48 Figure 30: Indian Personal Accident and Health Insurance Frauds and Crimes (INR Billion), 2013 2018... 48 Figure 31: Indian Personal Accident and Health Insurance Total Assets (INR Billion), 2009 2013... 49 Figure 32: Indian Personal Accident and Health Insurance Total Assets (INR Billion), 2013 2018... 49 Figure 33: Indian Personal Accident and Health Insurance Total Investment Income (INR Billion), 2009 2013... 50 Figure 34:Indian Personal Accident and Health Insurance Total Investment Income (INR Billion), 2013 2018... 50 Figure 35: Indian Personal Accident and Health Insurance Retentions (INR Billion), 2009 2013... 51 Figure 36: Indian Personal Accident and Health Insurance Retentions (INR Billion), 2013 2018... 51 Figure 37: Indian Personal Accident and Health Insurance Total Investment (INR Billion), 2009 2013... 52 Figure 38: Indian Personal Accident and Health Insurance Total Investment (% Share), 2009 and2013... 52 Figure 39: Indian Personal Accident and Health Insurance Penetration (%), 2009 2013... 53 Figure 40: Indian Personal Accident and Health Insurance Number of Policies Sold (Thousand), 2009 2013... 54 Figure 41: Indian Personal Accident and Health Insurance Number of Policies Sold (Thousand), 2013 2018... 55 Figure 42: Indian Personal Accident and Health Insurance Premium Per Capita (INR), 2009 2013... 56 Figure 43: Indian Personal Accident Insurance Number of Policies Sold (Thousand), 2009 2013... 57 Figure 44: Indian Personal Accident Insurance Number of Policies Sold (Thousand), 2013 2018... 57 Figure 45: Indian Personal Accident Insurance Gross Written Premium (INR Billion),2009 2013... 58 Figure 46: Indian Personal Accident Insurance Gross Written Premium (INR Billion), 2013 2018... 58 Figure 47: Indian Personal Accident Insurance Loss Ratio (%), 2009 2013... 59 Figure 48: Indian Personal Accident Insurance Loss Ratio (%), 2013 2018... 59 Figure 49: Indian Travel Insurance Number of Policies Sold (Thousand), 2009 2013... 60 Figure 50: Indian Travel Insurance Number of Policies Sold (Thousand), 2013 2018... 60 Figure 51: Indian Travel Insurance Gross Written Premium (INR Billion), 2009 2013... 61 Figure 52: Indian Travel Insurance Gross Written Premium (INR Billion), 2013 2018... 61 Figure 53: Indian Travel Insurance Loss Ratio (%), 2009 2013... 62 Figure 54: Indian Travel Insurance Loss Ratio (%), 2013 2018... 62 Figure 55: Indian Health Insurance Number of Policies Sold (Thousand), 2009 2013... 63 Figure 56: Indian Health Insurance Number of Policies Sold (Thousand), 2013 2018... 63 Figure 57: Indian Health Insurance Gross Written Premium (INR Billion), 2009 2013... 64 Figure 58: Indian Health Insurance Gross Written Premium (INR Billion), 2013 2018... 64 Figure 59: Indian Health Insurance Direct Written Premium (INR Billion), 2009 2013... 65 Figure 60: Indian Health Insurance Direct Written Premium (INR Billion), 2013 2018... 65 Figure 61: Indian Non-Life Health Insurance Loss Ratio (%), 2009 2013... 66 Figure 62: Indian Non-Life Health Insurance Loss Ratio (%), 2013 2018... 66 Figure 63: Indian Non-Life Health Insurance Retentions (INR Billion), 2009 2013... 67 Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 15

Figure 64: Indian Non-Life Health Insurance Retentions (INR Billion), 2013 2018... 67 Figure 65: Indian Personal Accident and Health Insurance Written Premium by Distribution Channel (% Share), 2013 and 2018... 70 Figure 66: Indian Personal Accident and Health Insurance Direct Marketing Commission Paid (INR Billion), 2009 2013... 71 Figure 67: Indian Personal Accident and Health Insurance Direct Marketing Commission Paid (INR Billion), 2013 2018... 71 Figure 68: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through Direct Marketing (INR Billion), 2009 2013... 72 Figure 69: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through Direct Marketing (INR Billion), 2013 2018... 72 Figure 70: Indian Personal Accident and Health Insurance Policies Sold Through Direct Marketing (Thousand), 2009 2013... 73 Figure 71: Indian Personal Accident and Health Insurance Policies Sold Through Direct Marketing (Thousand), 2013 2018... 73 Figure 72: Indian Personal Accident and Health Insurance Number of Direct Marketing Distributors, 2009 2013... 74 Figure 73: Indian Personal Accident and Health Insurance Number of Direct Marketing Distributors, 2013 2018... 74 Figure 74: Indian Personal Accident and Health Insurance Bancassurance Commission Paid (INR Billion), 2009 2013... 75 Figure 75: Indian Personal Accident and Health Insurance Bancassurance Commission Paid (INR Billion), 2013 2018... 75 Figure 76: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through Bancassurance (INR Billion), 2009 2013... 76 Figure 77: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through Bancassurance (INR Billion), 2013 2018... 76 Figure 78: Indian Personal Accident and Health Insurance Policies Sold Through Bancassurance (Thousand), 2009 2013... 77 Figure 79: Indian Personal Accident and Health Insurance Policies Sold Through Bancassurance (Thousand), 2013 2018... 77 Figure 80: Indian Personal Accident and Health Insurance Number of Bancassurance Distributors, 2009 2013... 78 Figure 81: Indian Personal Accident and Health Insurance Number of Bancassurance Distributors, 2013 2018... 78 Figure 82: Indian Personal Accident and Health Insurance Commission Paid to Agencies (INR Billion), 2009 2013... 79 Figure 83: Indian Personal Accident and Health Insurance Commission Paid to Agencies (INR Billion), 2013 2018... 79 Figure 84: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through Agencies (INR Billion), 2009 2013... 80 Figure 85: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through Agencies (INR Billion), 2013 2018... 80 Figure 86: Indian Personal Accident and Health Insurance Policies Sold Through Agencies (Thousand), 2009 2013... 81 Figure 87: Indian Personal Accident and Health Insurance Policies Sold Through Agencies (Thousand), 2013 2018... 81 Figure 88: Indian Personal Accident and Health Insurance Number of Agencies, 2009 2013... 82 Figure 89: Indian Personal Accident and Health Insurance Number of Agencies, 2013 2018... 82 Figure 90: Indian Personal Accident and Health Insurance E-Commerce Commission Paid (INR Billion), 2009 2013... 83 Figure 91: Indian Personal Accident and Health Insurance E-Commerce Commission Paid (INR Billion), 2013 2018... 83 Figure 92: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through E-Commerce (INR Billion), 2009 2013... 84 Figure 93: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through E-Commerce (INR Billion), 2013 2018... 84 Figure 94: Indian Personal Accident and Health Insurance Policies Sold Through E- Commerce (Thousand), 2009 2013... 85 Figure 95: Indian Personal Accident and Health Insurance Policies Sold Through E- Commerce (Thousand), 2013 2018... 85 Figure 96: Indian Personal Accident and Health Insurance Number of E-Commerce Distributors, 2009 2013... 86 Figure 97: Indian Personal Accident and Health Insurance Number of E-Commerce Distributors, 2013 2018... 86 Figure 98: Indian Personal Accident and Health Insurance Commission Paid to Brokers (INR Billion), 2009 2013... 87 Figure 99: Indian Personal Accident and Health Insurance Commission Paid to Brokers (INR Billion), 2013 2018... 87 Figure 100: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through Brokers (INR Billion), 2009 2013... 88 Figure 101: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through Brokers (INR Billion), 2013 2018... 88 Figure 102: Indian Personal Accident and Health Insurance Policies Sold Through Brokers (Thousand), 2009 2013... 89 Figure 103: Indian Personal Accident and Health Insurance Policies Sold Through Brokers (Thousand), 2013 2018... 89 Figure 104: Indian Personal Accident and Health Insurance Number of Brokers, 2009 2013... 90 Figure 105: Indian Personal Accident and Health Insurance Number of Brokers, 2013 2018... 90 Figure 106: Indian Personal Accident and Health Insurance Commission Paid to Other Channels (INR Billion), 2009 2013... 91 Figure 107: Indian Personal Accident and Health Insurance Commission Paid to Other Channels (INR Billion), 2013 2018... 91 Figure 108: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through Other Channels (INR Billion), 2009 2013... 92 Figure 109: Indian Personal Accident and Health Insurance New Business Gross Written Premium Through Other Channels (INR Billion), 2013 2018... 92 Figure 110: Indian Personal Accident and Health Insurance Policies Sold Through Other Channels (Thousand), 2009 2013... 93 Figure 111: Indian Personal Accident and Health Insurance Policies Sold Through Other Channels (Thousand), 2013 2018... 93 Figure 112: Indian Personal Accident and Health Insurance Number of Distributors in Other Channels, 2009 2013... 94 Figure 113: Indian Personal Accident and Health Insurance Number of Distributors in Other Channels, 2013 2018... 94 Figure 114: India The Insurance Regulatory Framework... 95 Figure 115: India Insurance Supervision and Control at Various Levels... 113 Figure 116: India Insurance Regulatory Framew orks for Company Registration and Operation... 117 Figure 117: India Judiciary System... 132 Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 16

Figure 118: Shares of Key Insurers in Indian Personal Accident and Health Insurance Segment (%), 2013... 136 Figure 119: Gross Written Premium Top Five Indian Personal Accident and Health Insurers, 2013... 137 Figure 120: Net Earned Premium Top Five Indian Personal Accident and Health Insurers, 2013... 138 Figure 121: Paid Claims Top Five Indian Personal Accident and Health Insurers, 2013... 139 Figure 122: Incurred Loss Top Five Indian Personal Accident and Health Insurers, 2013... 140 Figure 123: Indian, Bombay Stock Exchange Market Capitalization (US$ Billion), 2008 2012... 156 Figure 124: Indian GDP at Constant Prices (US$ Billion), 2008 2012... 157 Figure 125: Indian GDP Per Capita at Constant Prices (US$), 2008 2012... 158 Figure 126: Indian GDP at Current Prices (US$ Billion), 2008 2012... 159 Figure 127: Indian GDP Per Capita at Current Prices (US$), 2008 2012... 160 Figure 128: Indian Inflation Rate (%), 2008 2012... 161 Figure 129: Indian Unemployment Rate (%), 2008 2012... 162 Figure 130: Indian Household Consumption Expenditure(US$ Billion), 2008 2012... 163 Figure 131: Indian Total Population (Million), 2008 2012... 164 Figure 132: Indian Urban and Rural Populations (%), 2008 2012... 165 Figure 133: Indian Population Distribution by Age (%), 2008 2012... 166 Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 17

LIST OF TABLES Table 1: Indian Personal Accident and Heath Insurance Key Facts, 2013... 2 Table 2: Insurance Industry Definitions... 12 Table 3: Indian Insurance Industry Gross Written Premium by Segment (% Shares), 2009 2018... 19 Table 4: Indian Insurance Industry Direct Written Premium by Segment (% Shares), 2009 2018... 21 Table 5: India Life Insurance Regulatory Framew ork... 100 Table 6: India Property Insurance Regulatory Framew ork... 103 Table 7: India Motor Insurance Regulatory Framew ork... 106 Table 8: India Premium Rates for Third-Party (TP) Liability Insurance... 111 Table 9: India Corporate Income Tax Rates for the Financial Year 2013 2014... 127 Table 10: India Other Corporate Tax Rates for the Financial Year 2012 2013... 128 Table 11: India Changes in Corporate Tax Rates on Implementation of DTC... 128 Table 12: Shares of Key Insurers in Indian Personal Accident and Health Insurance Segment (%), 2013... 136 Table 13: New India Assurance Co. Ltd, Key Facts... 146 Table 14:New India Assurance Co. Ltd, Key Financials (INR Million), 2009-2013... 146 Table 15: United India Insurance Co. Ltd, Key Facts... 147 Table 16:United India Insurance Co. Ltd, Key Financials (INR Million), 2009-2013... 147 Table 17: National Insurance Co. Ltd, Key Facts... 148 Table 18:National Insurance Co. Ltd, Key Financials (INR Million), 2009-2013... 148 Table 19: ICICI Lombard General Insurance Co. Ltd, Key Facts... 149 Table 20:ICICI Lombard General Insurance Co. Ltd, Key Financials (INR Million), 2009-2013... 149 Table 21: Oriental Insurance Company Ltd, Key Facts... 150 Table 22:Oriental Insurance Company Ltd, Key Financials (INR Million), 2009-2013... 150 Table 23: Star Health & Allied Insurance Co. Ltd, Key Facts... 151 Table 24:Star Health & Allied Insurance Co. Ltd, Key Financials (INR Million), 2009-2013... 151 Table 25: HDFC Ergo General Insurance Company Ltd, Key Facts... 152 Table 26:HDFC Ergo General Insurance Company Ltd, Key Financials (INR Million), 2009-2013... 152 Table 27: Bajaj Allianz General Insurance Co. Ltd, Key Facts... 153 Table 28:Bajaj Allianz General Insurance Co. Ltd, Key Financials (INR Million), 2009-2013... 153 Table 29: Apollo Munich Health Insurance Company Ltd, Key Facts... 154 Table 30:Apollo Munich Health Insurance Company Ltd, Key Financials (INR Million), 2009-2013... 154 Table 31: Reliance General Insurance Company Ltd, Key Facts... 155 Table 32: Reliance General Insurance Company Ltd, Key Financials (INR Million), 2009-2013... 155 Personal Accident and Health Insurance in India, Key Trends and Opportunities to 2018 Page 18