The penetration of insurance in India is only at 3.9 percent, which is below the world’s average of 6.9% in 2013; as indicated by the minister Jayant Sinha in the parliament.
This rate of penetration is not sufficient as compared to the world’s index. The depth of insurance penetration is dependent on several factors like economic development, savings, and size of the insurance sector. The ratio of insurance penetration measured as a ratio of premium to gross domestic product (GDP) is about only 3.1 percent of the life insurance for the general insurance in 2013.
The health insurance is among other insurance types in the general insurance category. India is better than China and Russia in insurance penetration as per the BRICS report, but well below South Africa and little behind Brazil. South Africa with its insurance penetration stands at the top with 15.4 percent in 2013 where China with 3 percent, and Brazil with 4 percent above the Indian average and Russia with only 1.3 percent.
The statistics in the G20 countries indicate that South Africa holds the top position in insurance infiltration, followed by South Korea at 11.9 percent. Other nations following the leaders include U.K. at 11.5%, Japan at 11.1 percent, France at 9%, Italy at 7.6%, U.S.A. stands at 7.5 percent, Canada at 6.9 percent, Germany at 6.7% , and Australia at 5.2 percent.
There are countries falling behind India such as Argentina with 3.6 percent, Mexico with 2.1% and Indonesia with 2.1%, Turkey with 1.5%, and finally Russia at 1.3%.
(Source: This article has been adapted from the article "Insurance penetration in India at 3.9 percent, below world average" that appeared on Mar 10, 2015 in timesofindia.indiatimes.com)
- Most Read
- How to Revive Lapsed LIC Insurance Policy Online
Date: 15 September 2017
- How to Save Premium Cost on your Life Insurance Purchase
Date: 13 September 2017
- Why Renewal of the Term Insurance Policy is Important?
Date: 11 September 2017
- LIC Senior Citizen Pension Scheme 2017
Date: 30 August 2017
- 5 Questions You Must Seek Answers for Before Buying Life Insurance Policies
Date: 18 July 2017
- Best 5 LIC Policies To Invest in 2017
Views : 974512
- LIC Policy Status: Check LIC Policy Details and Statement Online
Views : 924176
- Best Term Insurance Plans in India with Claim Settlement Ratio
Views : 368688
- A Quick Guide To Post Office Monthly Income Scheme
Views : 358548
- National Pension Scheme (NPS) – Govt Approved Pension Scheme
Views : 235995