This document compares motor insurance in India and China. It finds that motor insurance makes up the largest segment of both countries' general insurance industries, comprising 46% of India's and over 70% of China's non-life premiums. While motor insurance has grown substantially in both countries in recent decades, China's market is larger and still growing faster due to its larger economy and rising middle class. The document also notes that digital technologies are becoming more important in both markets.

1. COMPARISON OF MOTOR
INSURANCE IN INDIA AND
CHINA
PREETHI.A
II MBA
BANKING & INSURANCE

2. INTRODUCTION
 Focus of insurers in 2015, it is “technology.”
 Investing in digital platforms
 Consumers to better shop for insurance
 Making products more transparent
 Easier-to-understand and compare.
 capitalizing on data analytics, cloud computing and
modeling techniques

3. Consumers in Asia-
willing to shift to digital channels than
consumers in any other region globally,
according to EY’s Global Consumer
Insurance Survey 2014.

4. ASIA PACIFIC REGION
 For life and non-life insurance products, with GDP
projected to be 5.5%.
 The growth of the middle class population,
increased the sales of personal lines insurance.
 Commercial lines insurance prospects remain
strong.
 increasingly technologically sophisticated
population.

6. MOTOR INSURANCE IN INDIA
 After liberalisation of the Indian insurance industry
in the year 1999- 2000, the Indian general
insurance industry has witnessed rapid growth.
 GDP has grown from INR 11,446 crore in FY02 to
INR 57,964 crore in FY12.
 Compounded annual growth rate (CAGR) of 17.6
percent.
 Changes in the regulatory environment
substantially impacted the industry dynamics.
 Coverage of underlying risks has increased
considerably.

8. CONTINUES……
 the general insurance industry has set a target of
crossing Rs 1 trillion mark in annual premium
income this fiscal, up from Rs 84,715 crore in 2014-
15.
 motor insurance has grown by 11-12 percent during
2014-15.
 Motor insurance with a share of around 46 per cent
in the total gross premium is the largest business.
 A slowdown in new motor car sales has hit motor
insurance business.
 Car sales in India fell for the second consecutive
fiscal in 2013-14 with a drop of 4.65 per cent.

10. GROWTH AND PROFITABILITY TRENDS
 Motor insurance stands tall in growing general
insurance sector.
 Motor insurance including both ' own damage' and '
third party' categories has maximum share of 44
percent in the general insurance business .
 The third-party insurance category of motor
insurance is mandatory in India.

11. Non-Life Insurance Business Performance:
2013-14 2012-13
Public
Sector
Private
Sector
Public Sector Private Sector
Premium Underwritten (Rs in Crores) 38599.71 32010.30 35022.12 27950.69
New Policies Issued (in Lakhs) 600.06 424.47 689.68 380.56
Number of Offices 7869 2003 6272 1827
Net Incurred Claims (Rs in Crores) 27817.96 17874.11 25061.37 14562.24
Number of Grievances reported during the year 17658 45677 20164 60358
Grievances Resolved During the Year 18083 45653 19057 60230
Grievance Resolved (in percent) 102.40 99.95 94.51 99.79

12. MOTOR INSURANCE IN CHINA
 China’s insurance market is one of the largest and
fastest growing market.
 the world’s second largest market.
 10% GDP economy growth over the last 30 years.
 The Chinese motor insurance market is expected to
generate total gross premium income of $84,502.6m in
2014.
 Compound annual growth rate (CAGR) of 14.1%
between 2010 and 2014.
 The personal segment is expected to be the market's
most lucrative in 2014
 Total gross premium income of $58,477.4m, equivalent
to 69.2% of the market's overall value.

14. CONTINUES……
 The performance of the market is forecast to
decelerate, with an anticipated CAGR of 10.2% for
the five-year period 2014 – 2019.
 It is expected to drive the market to a value of
$137,313.5m by the end of 2019.
 Despite new car sales slowing, auto insurance
continues to offer growth opportunities in the
property and casualty sector.
 73.1% of the total property and casualty market
and 56.6% of the foreign companies’ business mix.

15. HIGHLIGHT OPPORTUNITIES IN MOTOR
INSURANCE
 Over the next three years, foreign insurers
anticipate motor insurance will grow in the 10-15%
range.
 Predicting growth of around 10% and a second
group around 25% between 2015-18.
 Digital marketing will have a significant impact on
their business models over the next three years.
 The motor insurance, which accounts for more than
70% of the total non-life premiums.

17. NON-LIFE INSURANCE –GAINING WEIGHT AND
DELIVERING STABLE GROWTH
 Non-life market is even more concentrated than life,
with the top three insurers sharing 64.8% of the
market.
 PICC 34.4% market share,
 Ping An 17.8%
 China Pacific 12.3%
o Non-life market is dominated by motor insurance,
which accounts for more than 70% of total non-life
premiums.

19. MOTOR INSURANCE
 For motor insurance, the number of passenger cars has
jumped to 137.4 million by the end of 2013.
 China the largest passenger car market in the world.
 motor insurance maintains its dominance at least in the
medium term and to continue driving the growth for the
non-life sector.
 Historically, the motor third party liability (MTPL) sector
was open only for domestic players.
 In 2012 foreign insurers gain full access to compulsory
liability insurance for motor vehicle accidents.