Statsguru: How the insurance industry is becoming a two-speed sector

The insurance industry is becoming a two-speed sector. Public-sector companies are growing significantly slower than the private-sector ones, and this may well have implications for the sector’s overall penetration.

Insurance penetration is the value of the premiums relative to gross domestic product. Life insurance penetration declined in 2022-23 (FY23), dropping 20 basis points from the previous year to end at 3 per cent, showed data from the recently released annual report of the Insurance Regulatory and Development Authority of India. It remained at 1 per cent for the non-life sector (chart 1).

This means fewer people