Updated: December 21, 2019 9:24:46 am
The insurance density of the life insurance sector in 2018 was $55, unchanged from the life insurance density of the previous year, the annual report of the Insurance Regulatory and Development Authority of India (IRDAI) for 2018-19 released this week, shows. Life insurance penetration for 2018 was 2.74%, slightly lower than the 2.76% of 2017.
Insurance density is measured as the ratio of premium (in US dollars) to the total population; insurance penetration is measured as the ratio of premium (in US$) to GDP (in US$). Insurance density and insurance penetration indicate the level of development of the insurance sector.
The IRDAI report notes that the insurance density of the life insurance sector rose steadily from $9.1 in 2001 to $55.70 in 2010, and thereafter fell for three years to reach $41 in 2013 before rising again. Life insurance penetration increased from 2.15% in 2001 to 4.60% in 2009, and has thereafter showed a generally decreasing trend.
Subscriber Only Stories
There was a slight increase to 2.72% in 2015 from 2.60% in the previous year, and penetration, after holding steady at 2.72% in 2016, increased in 2017.
The insurance density of the non-life insurance sector has risen from $2.4 in 2001 to $18 in 2017 and to $19 in 2018. The non-life insurance penetration has risen from 0.56% in 2001 to 0.97% in 2018, shows the report.
📣 Join our Telegram channel (The Indian Express) for the latest news and updates
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.