"The sector, like others, has witnessed some merger and acquisitions in the past and will continue to witness them and newer opportunities will emerge in the future. "Players with sound underwriting practices, strong financials and right management practices will continue to grow in the long-run," said Anand Pejawar, Deputy Managing Director, SBI General Insurance.Pejawar further said India's insurance landscape is vast and there is immense scope and enough volume for players to co-exist. Given the scope for growth in the sector, both large and niche players can continue to operate in the market.Currently there are 24 life insurance companies and 31 non-life or general insurance firms, including specialised players like the Agriculture Insurance Company of India Ltd and ECGC Limited.There have been consolidation in the insurance space in the recent past -- Bharti AXA General Insurance merger with ICICI Lombard General Insurance was completed in September 2021 and HDFC Ergo acquired Apollo Munich Health Insurance Company in 2020. "M&A, while useful in building scale does not necessarily bring more capital to the business. "Insurance companies are also collaborating with insurtechs to provide innovative solutions and deliver a unified experience throughout the customer journey from distribution, service, to claims.Shailaja Lall, Partner, Shardul Amarchand Managladas & Co said the insurance sector is highly capital intensive and there is going to be continued investment activity in the insurance sector, especially with respect to insurtech companies, led by private equity funds.

Source: Economic Times September 19, 2022 04:32 UTC