The Indian insurance industry is witnessing significant growth, with several overseas insurers holding substantial stakes in local companies. For instance, Ageas holds 74% in Ageas Federal Life Insurance, while Aviva and Nippon Life have joint ventures with Dabur and Reliance Life, respectively. Zurich also owns 70% of Kotak General Insurance. The Insurance Amendment Bill, which seeks to allow 100% FDI in insurance, is likely to be passed in the ongoing Winter session of Parliament.
Future Generali India Insurance, a joint venture between Future Group and Generali, is expected to close the current fiscal with a gross written premium of Rs 5,550 crore, representing a 14% annual growth over the past five years. The company’s managing director and CEO, Anup Rau, expects this growth rate to continue, with the premium income doubling to Rs 10,000 crore by 2030. Rau attributes the company’s growth to its diversified business portfolio, which includes health, motor, and crop insurance.
The removal of GST from individual insurance premiums, including health insurance, is expected to have a negligible impact on the company’s profitability. Rau explains that the company’s retail portfolio is small, and most of its income comes from group insurance, which is not affected by the GST change. As a result, the company does not plan to increase premiums.
Future Generali’s business verticals include health insurance, which accounts for 37% of its overall topline, followed by motor insurance, which accounts for 32%. The company is also exploring new areas of business, such as surety bonds, which are being used by the National Highways Authority. With a strong parent company like Generali, which has a presence in over 50 countries and serves over 71 million customers, Future Generali is well-positioned to capitalize on the growing Indian insurance market.