While the penetration of life insurance sector has gone up from 2.15 per cent in 2001-02 to 3.2 per cent in 2021-22, non-life insurance penetration has gone up from 0.56 per cent to 1.0 per cent during the same period
“2022 has been a year marked with milestone regulatory changes and significant Government initiatives, which have presented the insurance industry with robust opportunities, policy support, various strategic partnerships and increased access to strategic investments.” said Bhargav Dasgupta, MD & CEO of ICICI Lombard General Insurance,the second largest insurer in the country
Hyderabad:
Insurance density in India increased from USD 78 in 2020-21 to USD 91 in 2021-22. The level of insurance density has reported consistent increase from USD 11.5 in 2001-02 to USD 64.4 in the year 2010-11, according to 2021-22 annual report of the IRDAI.
After some ups and downs, insurance density recorded steady increase from the year 2016-17.
While life insurance density has gone up from USD 9.1 in 2001-02 to USD 69 in 2021-22, non-life insurance density has gone up from USD 2.4 to USD 22 during the same period.
However, the insurance penetration in India during 2021-22 was 4.2 per cent remained same as in 2020-21.
During the first decade of insurance sector liberalisation, the sector has reported increase in insurance penetration from 2.71 per cent in 2001-02 to 5.2 per cent in 2009-10.
Since then the level of insurance penetration declined till 2014-15 due to decline in life insurance penetration.
The insurance penetration started again increasing from 2015-16 and reached 4.20 per cent in 2021-22.
While the penetration of life insurance sector has gone up from 2.15 per cent in 2001-02 to 3.2 per cent in 2021-22, non-life insurance penetration has gone up from 0.56 per cent to 1.0 per cent during the same period.
“2022 has been a year marked with milestone regulatory changes and significant government initiatives, which have presented the insurance industry with robust opportunities, policy support, various strategic partnerships and increased access to strategic investments. Recent announcements by the regulator, IRDAI, ensures giant strides in welcoming capital flows into the industry, along with ease in product innovations and enhanced distribution footprint. Since the general insurance industry’s focus on digital enablement this year, India has become the second largest InsurTech market in the APAC region,” said Bhargav Dasgupta, MD & CEO of ICICI Lombard General Insurance, the second largest general insurer in the country.
The coming year of 2023, driven by the reforms and the burgeoning ecosystem of digital health, emergence of digital intermediaries across the entire customer lifecycle, increased insurance awareness and participation from ‘Bharat’ and SME sector adoption of insurance will accelerate across segments. At ICICI Lombard, we have renewed our vigour to innovate basis customer data and telematics, expedite the adoption of changing technologies like AI/ML, IOT and Big Data and create personalised and D2C products primarily for Gen Z, women and digital natives,” he said.
As per Swiss Re Sigma report, globally insurance penetration and density were 3.0 per cent and USD 382 respectively for the life segment and 3.9 per cent and USD 492 respectively for the non-life segment in 2021.
Overall insurance penetration and density were 7.0 per cent and USD 874 respectively in 2021.