Market Trends of India Life & Non-Life Insurance Industry
This section covers the major market trends shaping the India Life & Non-Life Insurance Market according to our research experts:
Insurance Penetration at Global Landscape
In India, the insurance penetration rate for 2021-2022 was 4.2%, remaining constant from 2020-2021. The insurance sector showed a rise in insurance penetration over the first ten years of liberalization, going from 2.71% in 2001-2002 to 5.2% in 2009-2010. Since then, life insurance penetration has decreased, and this decline has continued through 2014-15. In 2021, the share of non-life insurance premiums was 56.31% and the share of the life insurance industry was 43.69% worldwide. However, India's portion of the life insurance market was significant, at 76.14%, compared to the share of the non-life insurance market, which was 23.86%.
Insurance Industry is Growing Rapidly
According to data from Swiss Re, India holds the tenth-place position (twelfth in 2020) in the world's insurance market with a market share of 1.85% in 2021 (1.78% in 2020). In 2021, India's total insurance premiums increased by 13.46% (7.8% inflation-adjusted real growth), while worldwide premiums rose by 9.04% (3.4% inflation-adjusted real growth) during the same year. In India, the insurance density rose from USD 78 in 2020-2021 to USD 91 in 2021-2022 From USD 11.5 in 2001-2002 to USD 64.4 in the year 2010-2011, the level of insurance density showed a constant rise. After some ups and downs, the insurance density increased steadily starting in 2016-17. Non-life insurance density increased from USD 2.4 to USD 22 over the same time period, while life insurance density increased from USD 9.1 in 2001-2002 to USD 69 in 2021-2022.
