Subhash Khuntia, Chairman, Insurance Regulatory and Development Authority of India (IRDAI), today called upon the insurance companies to make use of the tremendous opportunity available to grow the insurance market.

Speaking at FINCON 2019 - 20th Annual Insurance Conference organized by FICCI, Khuntia said, "Many of you look at market share. But I suggest don?t be too bothered about improving market share. If growth is high you don't have to bother about market share. Put your heads together to make the market grow."

Highlighting the huge protection gap in the country, Khuntia said, "It is important that you provide protection to customers."

He further added that in a market with such huge opportunities, insurance companies will be comfortable even if their market share doesn't grow.

He added that in the first year of liberalization, India had just five life and nine non-life insurance companies. Both the numbers rose to 15 during the next four years.

But during the first five years, only three life and 13 non-life companies reported operating profit. "You must remain financially sustainable," Khuntia cautioned.

He said that currently, there are 24 life and 34 non-life insurance companies. Last year the overall rate of growth of premium was 13 per cent, higher than the economic growth of the country.

"India being a young population," this demographic characteristic is expected to continue for the next several years, offering insurers a very good atmosphere in which to operate. Of the life insurance companies, 21 are reporting operational profit compared to 25 in the non-life sector, Khuntia added.

He called upon the non-profitable companies to introspect. "Those struggling will have to change course and see that long-term sustainability is ensured," he said.