Insurance Penetration and Density

• Measuring Development
• Insurance Penetration Definition
• Insurance Density Definition
• Indian Insurance Penetration
• Comparison to Global Average
• India’s ranking
• Breakdown of Penetration
• Global Comparison
• Rising Insurance Density
• Life Insurance Density
• Non-Life Insurance Density
• Global Insurance Density Ranking
• Global Leader in Insurance Density
Life Insurance Market FY 2022-23
1. India is the 10th Largest life insurance market globally.
2. Life Insurance penetration reached 4.2% in 2021, showing
significant growth compared to 2.7% in the year 2000.
3. Union Budget Proposal:
● The Union Budget 2023-24 proposes limiting income tax
exemption of high value life insurance policies.
● Income from policies with up to Rs. 5 lakh aggregate premium
will be exempt from taxation
4. Private Life Insurers’ Growth:
● Private Life insurers projected to grow retail at a CAGR of over
17%.
5. Market Share in FY23:
● Public Sector(LIC) and Private Sector held 31.42% and 67.72% of
first
year premiums, respectively.
 Life Insurance Corporation of India
1. Leadership:
● LIC, the only public sector life insurer, retained market
leadership with nearly 67.72% of the market.
2. Premium Income:
● It achieved a record first year premium income of Rs.
206,893.51 crore under individual assurance
business.
3. Premium Growth in November 2022:
● Life insurers reported a 34.71% YoY increase in premiums
to Rs. 2.06 trillion.
● LIC’s premium witnessed 42% growth, and private insurers
grew 21.48% YoY during this period.