The rapid economic expansion, ably-supported by digital infrastructure and innovation will play a defining role to make the insurance market in India as one of the largest across the globe, Insurance Regulatory and Development Authority of India (IRDAI) chairman Debasish Panda said on Thursday. He was speaking at a sector exclusive forum to discuss 'Investing into India's burgeoning Insurance Ecosystem', here organised by the Indian Venture & Alternate Capital Association (IVCA), the apex industry body for alternative assets.

"The market (insurance) size is estimated to reach USD 200 billion by FY27 at the present growth rate. However, we have aspirational plans and we expect the market to grow by leaps and bounds and the contribution of venture capital, private equity and family offices in nation building is a step in the right direction," Panda said.

"With the support of the ecosystem, the burgeoning Indian insurance sector gains additional capital source as well as help foster new products and solutions to overcome present challenges of affordability and accessibility," he was quoted as saying by IVCA in a release.

According to the release, insurance penetration in India experienced an increase in momentum in recent years moving to 4.2 percent in FY21 from 3.76 percent in FY20. Multiple reasons are cited for this development, specifically, ease of doing business, deployment of digital solutions by insurers, change in the attitude of consumers and their realisation of financial security, evolution of products, including new regulatory framework regarding product approval and distribution by IRDAI, it said.

"With India today ranking 10th in the global life insurance market and ahead of China (at 2.4 percent) and UK (at 3 percent), we are suitably positioned to cater to the rising demand of younger and digital-first consumers emerging from smaller and newer geographies and across life and non-life," said Karthik Reddy, chairperson, IVCA & co-founder and managing partner, Blume Ventures.