Nikolaus von Bomhard sees a "wealth of opportunities" in India's booming insurance market

The socio-economic transformation of India, the world’s fourth largest economy, poses new challenges for its insurance industry, according to Munich Re.

Forecasts show that in ten years’ time the country’s overall insurance market will increase to some €100bn – nearly five times its current volume.

Nikolaus von Bomhard, chairman of the board of management of Munich Re, sees a wealth of growth opportunities in India’s booming insurance market for the company.

Speaking in New Delhi, von Bomhard stressed Munich Re’s resolute commitment to India’s reinsurance market: “We believe it is necessary for the stability of the booming insurance market that the nascent liberalisation of India’s primary insurance market be extended to include international reinsurance business. As soon as legal circumstances permit, we will establish a reinsurance base in India.”

Fewer than 10% of India’s 300m-strong middle class currently have health insurance. The country’s very young population structure, increased life expectancy and positive economic development will usher in a steep rise in medium-term healthcare spending.