Tapping The Market

With many more IPOs lined up and big-time consolidation in the offing, the insurance industry is attracting huge interest from investors.

- Kalpana Mandal & Kumar Dipankar

More insurance companies are expected to hit the capital markets this year after successful initial public offers (IPOs) of five insurers. So far, five insurance companies, including two State owned companies, have collectively raked in about Rs 45,000 crore. Going forward, other State-owned general insurance companies - National Insurance Company, Oriental Insurance Company and United India Insurance Company - are gearing up for listing.

New developments

The insurance sector is growing at a rapid pace, particularly the health insurance segment, notes Apollo Munich Health Insurance CEO Antony Jacob. "Technology-led disruptive ideas are changing the face of business, and the category (health insurance) per se is booming with new products being launched and the distribution network being expanded. This trend will continue, and insurers will focus on tech-driven ideas," adds Mr Jacob.

Though demonetisation and Goods and Services Tax (GST) have disrupted the business and economic growth in the short run, the growth momentum will return after the economy stabilises, Mr Jacob reasons out, adding: "As the sector grows, new entrants would come in with new products. This will further make the market competitive."