India's insurance penetration needle remains flat at 3.7% in 2024-25

In 2024-25, India’s insurance penetration remained at 3.7 per cent, the same as in 2023-24. Insurance penetration for the life insurance industry declined from 2.8 per cent in the previous year to 2.7 per cent during 2024-25. Penetration with respect to the non-life insurance industry remained unchanged at one per cent during 2024-25, as in 2023-24. 

In 2024-25, insurance density in India showed a modest rise, increasing from $95 in 2023-24 to $97 in 2024-25. Specifically, life insurance density increased from $70 to $72, while non-life insurance density remained stable at $25. This upward trend in insurance density has been consistent since 2016-17. 

Insurance penetration and density are two metrics often used to assess the level of development of the insurance sector in a country. While insurance penetration is measured as the percentage of insurance premiums to GDP, insurance density is calculated as the ratio of premium to population (per capita premium).