Indian Insurance Market
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Indian Insurance Market

IRDA - Indian Insurance Market
Real Premium Growth Rate

Indian Insurance in the global scenario

 

1.India’s share in global insurance market was 1.92 percent during 2018. However, during 2018, the total insurance premium in India increased by 9.3 percent (inflation adjusted) whereas global total insurance premium increased by 1.5 percent (inflation adjusted).
 
 2.Globally, the share of life insurance business in total premium was 54.30 percent and the share of non-life insurance premium was 45.70 percent during 2018. However, the share of life insurance business for India was very high  at 73.85 percent while the share of non-life insurance business was at 26.15 percent. 
 
 3.In life insurance business, India is ranked 10th among the 88 countries, for which data is published by Swiss Re. India’s share in global life insurance market was 2.61 percent during 2018. However, during 2018, the life insurance premium in India increased by 7.7 percent (inflation adjusted) when global life insurance premium increased by 0.2 percent (inflation adjusted).
  
 4. The Indian non-life insurance sector witnessed a growth of 14 percent (inflation adjusted) during 2018. During the same period, the growth in global non-life premium was 3 percent (inflation adjusted). However, the share of Indian non-life insurance premium in global non-life insurance premium was at 1.1 percent and India ranked 15th in global non-life insurance markets.
 
 
Insurance Penetration and Density in India
The measure of insurance penetration and density reflects the level of development of insurance sector in a country. While insurance penetration is measured as the percentage of insurance premium to GDP, insurance density is (per capita premium). During the first decade of insurance sector liberalization, the sector has reported consistent increase in insurance penetration from 2.71 percent in 2001 to 5.20 percent in 2009. Since then the level of penetration was declining. However, there was a slight increase in the years 2015 (3.44 percent), in 2016 (3.49 percent), in 2017 (3.69) and in 2018 (3.70). The level of insurance density reached upto USD 64.4 in the year 2010 from the level of USD 11.5 in 2001. However, there was a slight decline further, but regained its position gradually and has become USD 74 in the year 2018, (USD 73 in 2017).The insurance density of life insurance sector had gone up from USD 9.1 in 2001 to reach the peak at USD 55.7 in 2010. Since then it has exhibited a declining trend up to the year 2013. During the year 2018, the level of life insurance density was USD 55 (USD 55 in 2017). The life insurance penetration had gone up from 2.15 percent in 2001 to 4.60 percent in 2009. Since then, it has exhibited a declining trend up to the year 2014. There was a slight increase in 2015 reaching 2.72 percent, remained same in 2016, increased to 2.76 in the year 2017 and decreased to 2.74 in the year 2018.The penetration of non-life insurance sector in the country has gone up from 0.56 in 2001 to 0.97 in 2018 (0.93 in 2017). Its density has gone up from USD 2.4 in 2001 to USD 19 in 2018 (USD 18 in 2017).

(Source: SwissRe, Sigma various issues)

 
 
 
 
 

 

 

 
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