Insurance sector: A snapshot of growth, new products and grey areas

The insurance sector is in its 17th year after the sector was opened to private players. While it has undergone a sea change in terms of growth and new products, many old issues remain.

Business Standard brings you a snapshot of the Indian insurance industry.

Penetration 

Insurance penetration, measured as a percentage of premiums to a country's gross domestic product, which had been continuously dropping between 2010 and 2014, picked up slightly in calendar 2015. However, at 3.44%, the penetration figure is the second lowest since 2005-06.

Mis-selling

Mis-selling or unfair business practice complaints, which continues to dominate the grievances in life insurance, have seen a slight reduction in FY16 to 49% from 52% in the previous year. This was followed by policy-servicing related complaints, which rose marginally over the previous year.

Business growth

While non-life insurance usually sees higher growth than life in premium collection, both have been at par in FY17. The note ban helped life insurance industry with a spurt in single premium policies.

 

All figures in Rs crore

Source: Irdai