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Insurance penetration
in India
29
Market Survey
average of 3.7 per cent (Table II).
However, non-life insurance penetration in India, which stood at 0.8
per cent in the same year, was well
below the world average of 2.8 per
cent. It is interesting to note that the
penetration in India is way below
the penetration levels in major Asian
economies such as Hong Kong, Japan, Taiwan, South Korea, Malaysia
and Singapore; however, insurance
penetration in India is above China,
Pakistan and Sri Lanka.
Insurance density in India for
life insurance, which stands at US$
42.70, is well below the world average of US$ 372.60 (Table II). Similarly, insurance density for non-life
insurance, which stands at US$
10.50, is well below the world average of US$ 283.10 in 2012. It is interesting to note that the insurance
density in Malaysia is eight times as
high as in India. Pakistan and Sri
Lanka are laggards in terms of their
insurance density.
2006
2007
2008
2009
2010
2011
2012
2013
33.2
40.4
41.2
47.7
55.7
49.0
42.7
54.31
4.10
4.00
4.00
4.60
4.40
3.40
3.17
4.0
5.2
6.2
6.2
6.7
8.7
10.0
10.5
9.0
0.60
0.60
0.60
0.60
0.71
0.70
0.78
0.70
A global comparison
of insurance
penetration and
density
Insurance
penetration
in India for life insurance,
which stood at 3.2 per cent
in 2012, was below the world
60
4.5
50
40
In USD
2.5
2
20
1.5
10
1
0.5
July 2014
Non-life insurance
Penetration
Life insurance
Density (USD)
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Year
Life insurance
Penetration
2001
30
30
Year
Per cent
3.5
Non-life insurance
Density (USD)
Market Survey
Table II
Table III
Countries
Australia
Brazil
France
Germany
Russia
Switzerland
United Kingdom
United States
Asian countries
Hong Kong
11.4
India
4.1
Japan
11.0
Malaysia
5.1
Pakistan
0.7
PR China
3.0
Singapore
5.9
South Korea
11.6
Sri Lanka
1.2
Taiwan
17.0
Thailand
4.4
World
6.6
10.1 11.0
3.4 3.2
8.8 9.2
3.3 3.1
0.4 0.4
1.8 3.0
4.3 5.9
7.0 11.6
0.6 1.2
13.9 17.0
2.7 3.0
3.8 3.7
1.4
0.8
2.3
1.7
0.3
1.8
4.3
7.0
0.6
13.9
2.1
2.8
3442.0
49.0
4138.0
328.0
4.0
99.0
2296.0
1615.0
15.0
2757.0
134.0
378.0
4024.7
42.70
4142.5
329.9
5.3
102.9
2471.8
1578.1
14.8
3107.1
156.5
372.60
519.2
10.50
1024.5
184.3
3.4
76.0
890.2
1207.3
18.2
652.5
109.7
283.10
Region
Life
Non-life Total
42.4
100
Emerging markets
52.4
47.6
100
Asia
28.9
71.1
100
India
80.2
19.8
100
World
56.8
43.2
100
Table IV
Number of Registered
Insurers in India
Type of business
Life insurance
23
24
Non-life insurance
21
27
Reinsurance
Total
44
52
31
Market Survey
Gross Domestic Product
and Insurance Penetration
in India
Year
Per
capita
GDP (in
US$)
GDP
growth
(in per
cent)
Insurance
penetration (in
per cent)
2000
564.21
5.8
2.32
2001
576.93
3.9
2.71
2002
595.60
4.6
3.26
2003
608.99
6.9
2.88
2004
647.10
7.6
3.17
2005
687.31
9.0
3.14
2006
740.12
9.5
4.80
2007
797.26
10.0
4.70
2008
863.46
6.9
4.60
2009
885.17
5.9
5.20
2010
947.75
10.1
5.10
2011
1034.24
7.9
4.10
2012
1085.23
4.5
3.95
2013
1106.80
4.9
4.70
July 2014
Per cent
Table V
Dr S. Amutha Rani is assistant professor in post-graduate commerce at Sri Kaliswari College, Sivakasi, Tamil Nadu.
P. Jeyachitra is an M. Phil scholar in the
same college
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