As of 2020, the penetration for life insurance in India is 3.2 per cent and nonlife insurance penetration is 1 per cent
Though, India is at par with international average in terms of insurance penetration for life insurance, the country lags behind in terms of non-lifeinsurance, said the Economic Survey on Monday.
Globally, insurance penetration was 3.3 per cent for the life segment and 4.1 per cent for the non-life segment in 2020.
In India, insurance penetration was 2.71 per cent in 2001 and has steadily increased to 4.2 per cent in 2020.
As of 2020, the penetration for life insurance in India is 3.2 per cent and nonlife insurance penetration is 1 per cent.
The insurance density in India increased from $11.5 in 2001 to $78 in 2020.
In 2020, density for life insurance in India is $59 and non-life insurance is $19, much lower than global standards.
Globally, insurance density was $360 for the life segment and $449 for the non-life segment respectively in 2020 .
During 2020-21, the gross direct premium (within and outside India) of non-life insurers was Rs `2,02,082 crore, as against Rs 1,92,193 crore in 2019-20, registering a growth of 5.2 per cent.
Motor and health segments contributed a significant portion of the growth.
Life insurance industry recorded a premium income of Rs 6,28,731 crore during 2020-21, as against Rs 5,72,910 crore in the previous financial year, registering a growth of 9.74 per cent.
While renewal premium accounted for 55.7 per cent of the total premium received by the life insurers, new business contributed the remaining 44.3 per cent.