General Insurance in India growing at a CAGR of 22%, with profitability taking a beating

Overall,  while Indian  General Insurance  industry achieved significant growth over the past 5 years, the profitability of industry deteriorated sharply A multitude of factors adversely impacted the industry profitability over the last five years which are

1. Price de-tariffication provided freedom to general insurance companies to decide the premium rates in most of the product segments  .
2. Proliferation of new  companies who have  entered the general insurance business has led into a demand supply constraints with intensifying competition and focus on growth by the new entrants leading  to competitive pricing pressure
3. Awareness on Insurance Buying: In India both insurance premiums and insurance density( premiums paid vs population ) is lower than developing or  comparable developed nations 

This is where the web can play a huge role ..Online Insurance buying can completely cut off the commissions  thereby eliminating the costs incurred as a " distributors fee" With  Indian demograhics getting  more attractive  coupled with  greater web connectivity and better broadband broadband connectivity  speeds , More of Indian Consumer would be gravitating towards buying an Insurance policy online .