With $65 bn in annual premium volume in 2009, India's insurance sector, which ranks 12^th largest insurance market worldwide, is now being reckoned as one of the most promising markets by the bigwigs of the global insurance sector. And rightly so. Recording double-digit growth in annual premium collection, India, along with China, has emerged as one of the leading markets which have helped the global insurance industry pull itself out of woods post-2008 in the wake of the worldwide global economic crisis. But the big question is: Can the domestic insurance sector sustain its growth momentum threatened by a slew of regulatory challenges involving the much popular ULIPs, a key product for the industry, and lack of awareness? Nevertheless, the industry has a bright future as it taps into a plethora of distribution channels, leveraging on technology and steps up efforts to penetrate into the country's hinterland.

To say that insurance is one of the most happening industries to be in as far as India is concerned would be a gross understatement. For, none other than the Sage of Omaha, the legendary Warren Buffett has chosen the sector to make his much-awaited investment into India through his investment vehicle, Berkshire Hathaway. "We've looked a lot at being in the insurance business in India," said the maverick investor at the recently held Berkshire's annual meeting in response to a shareholder question; Berkshire's mainstays include insurance and reinsurance. Buffett, who is also the world's third richest person, is reportedly eyeing the auto insurance space to kick-start his firm's India foray. Leave aside the anticipations, even the existing list of investors is not less impressive either, with who's who of global insurance giants—from Allianz to Prudential, Standard Life to Met Life—already having a presence in India.

What is driving these global biggies to the Indian insurance sector? Experts attribute this to mainly two factors: first, a burgeoning population—demographers project India to takeover China in a span of just two decades from now, and second, rising disposable incomes coupled with the fact that insurance penetration in the country is much below the world average. No surprise then Indian insurance market is among one of the most sought-after destinations for global insurers.

The Analyst Magazine, Insurance Industry, Global Insurance Sector, Insurance Business, Export Credit Guarantee Corporation, Agricultural Insurance Company, Health Insurance Companies, Foreign Insurance Companies, Emerging Economies, Direct Marketing, Electronic Clearing Service, Multiple Distribution Channels, Global Economic Crisis.