A snapshot: Insurance sector has undergone a sea change, but issues remain

The insurance industry is in its 20th 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 remains flat

During the first decade of the insurance sector liberalisation, the sector has reported consistent increase in insurance penetration from 2.71 per cent in 2001 to 4.6 per cent in 2009. Since then the level of penetration was declining. As of 2018, India’s insurance penetration stands at 2.74 per cent.

 

Sum assured is small compared to other countries  

India’s sum assured, as a percentage of gross domestic product, ranks one of the lowest among major countries. While Singapore’s sum assured as percentage of GDP is 273 per cent, for India it is merely 78 per cent.

 

How the industry has performed 

The life insurance industry saw a robust growth of 31.8 per cent in its first year premiums during April-February 2019, while the growth in general insurance was slower.