India: Insurance penetration rises to 3.4pc

Insurance penetration in India has risen partially to 3.4 percent in financial year 2015-16 compared to 3.3 percent in 2014-15, according to Swiss Re’s latest sigma report. The report said that total insurance premiums in India grew by 7.9 percent in 2015 owing to stronger growth in life and non-life premiums. Insurers attributed this growth to the Jan Suraksha insurance schemes.

In FY15, insurance penetration had hit a 10-year low in India dropping to 3.3 percent of gross domestic product (GDP). “Insurance penetration in India remained low at 3.44 percent in 2015 reflecting large untapped potential,” the report said

Life premiums growth witnessed a turnaround in India, growing by 7.8 percent in 2015, compared to a contraction of 2.1 percent in 2014. The recovery was underpinned by investment-linked products, which posted strong growth through bancassurance channels.

The survey said that non-life premiums growth also picked-up, growing by 8.1 percent, compared to a growth of 2.2 percent in 2014. Growth was led by stronger health and motor third party liability premiums.