Enhancing the Operational Efficiency of the NonLife Insurance Business in India by Integrating Actuarial and Data Science Techniques

Abstract

The insurance industry acts as a cushion for every economy. It is therefore important for the newlineindustry to function effectively and efficiently to ensure the smooth running of the economy. newlineIn the developed economies the GDP penetration of the insurance industry is about 8. When newlinewe talk about the Indian insurance industry we are looking at a composition of 57 insurance newlinecompanies of which 24 are in the life insurance business and 33 are involved in the non-life newlinesector. These include both the public sector and private companies. India is an emerging newlineinsurance market in the world, where the penetration of the Insurance sector in the form of newlinepremiums makes about 3.69% of the country s GDP. The insurance industry in India has seen newlinea slow yet steady growth with time, from making about 2.71% of the GDP from premiums in newline2001 to about 3.69% in the year 2017. The Indian insurance sector is expected to attain a newlinemarket of $280 billion by the end of the financial year2021. For such an insurance market that newlinehas very high growth potential, it is essential that it operates at a high level of efficiency and newlinehas sustainable growth.