- Language: English
- 64 Pages
- Published: May 2008
- Region: India
Bajaj Allianz Case Study: Insurer completes first decade in India
- Published: February 2012
- Region: Global, India
- 20 pages
German insurer Allianz entered the newly-privatized Indian market in 2001, with local company Bajaj as its partner. This report shows how the company dealt with the challenges and opportunities of this market, to become one of India's leading private-sector insurers.
Features and benefits
- MarketLine Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
- Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.
India has an undeveloped insurance market as measured by density and penetration. It has experienced several years of strong premium growth.
Since 2001, regulatory changes have seen private-sector companies begin to compete with the state-owned incumbents in both the life and non-life segments.
Bajaj Allianz is a leading provider of microinsurance products, and works on education projects to raise awareness of insurance among Indians who are unfamiliar with the concept.
Your key questions answered
- What is the size and growth rate of the Indian insurance market?
- What are the barriers to entry for a foreign private-sector insurance company?
- How successful has Bajaj Allianz been in this market?
India has a small but rapidly growing insurance market
In 2010, the Indian market was worth $78 billion
Insurance penetration and density are low but increasing
Life insurance is the most lucrative sector
State-owned insurers dominate both the life and non-life segments
But private insurers are a growing presence
India has a growing middle class, but many people remain poor
Regulation raises entry barriers for foreign players
Foreign insurers can only enter the market with a local partner
The General Insurance Company is the mandatory reinsurance body
Private-sector insurers must write a percentage of their business in rural areas
In 2001, Allianz entered the market in a joint venture with Bajaj
Bajaj Allianz offers a full range of products
Private-sector insurers have opened up new distribution channels
Bajaj Allianz has seen rapid growth in its premium income
The company engages in insurance education
Bajaj Allianz has many of its offices in non-urban areas
Competition is intense
Allianz’s first ten years in India have been successful
Ask the analyst