New Delhi:
In India, insurance penetration which was 2.71 per cent in 2001 has steadily increased to 3.76 per cent in 2019.,according to the Economic Survey-2020-21presented by finance minister Nirmala Sitharaman on Friday.
The country's insurance penetration was 3.70 per cent in 2018.
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).
In contrast, insurance penetration in Asia, i.e., Malaysia, Thailand and China was 4.72, 4.99 and 4.30 per cent respectively in 2019.
As of 2019, the penetration for life insurance in India is 2.82 per cent, the penetration for non-life insurance is much at 0.94 per cent.
Globally insurance penetration was 3.35 per cent for the life segment
The performance and potential of insurance sector is assessed using two indicatorsInsurance penetration and Insurance
Density. Insurance penetration is calculated as percentage of insurance premium to GDP and insurance density is calculated as ratio of insurance premium to population.
Globally insurance penetration was 3.35 per cent for the life segment and 3.88 per cent for the non-life segment in 2019. Although the penetration is lower in India for both, it is particularly low for Non-life insurance as compared to other countries
The insurance density in India which was $ 11.5 in 2001 reached to approximately $ 78 in 2019.It was at $74 in 2018..
The level of insurance density reached upto $ 64.4 in the year 2010 from the level of $ 11.5 in 2001.
However, there was a slight decline further, but regained its position gradually and has become $ 74 in the year 2018, ($ 73 in 2017).
The comparative figuresfor Malaysia, Thailand and China in 2019 were much higher at US$ 536, US$ 389 and US$ 430 respectively. Density for Life insurance is US$ 58 and NonLife insurance is much lower at $19 in 2019 in India
Globally insurance density was $379 for the life segment and $ 439 for the non-life segment respectively in 2019.
United States has particularly high insurance density in the Non-life category. India has extremely low insurance penetration as compared to global average and other comparable countries
During 2019-20, the gross direct premium of non-lLife insurers was Rs 1.89 lakh crore, as against Rs 1.69 lakh crore in 2018-19, registering a growth of 11.45 per cent. Within non-life category, motor and health segments primarily are the main contributors to industry to report this growth.
Life insurance industry recorded a premium income of Rs 5.73 lakh crore in 2019-20 as against Rs 5.08 lakh crore in the previous financial year, registering a growth of 12.75 per cent.
While renewal premium accounted for 54.75 per cent of the total premium received by the 24 life insurers, new business contributed the remaining 45.25 per cent.
While renewal premium accounted for 54.75 per cent of the total premium received by the life insurers, new business contributed the remaining 45.25 per cent