Dun & Bradstreet India’s Leading BFSI Companies 2017

Total Real Premium Growth Rate in 2015 (%)

Life Premium (US$bn)

Life Premium Growth

Non-Life Premium (US$bn)

Non-life Premium Growth

Total Premium (US$bn)

Regions / Countries

Total

Advanced Countries Emerging markets

2,089.8

2.5

1614.3

2.6 7.8 9.2 8.1 3.6

3,704.1

2.5 9.8 8.2 7.9 3.8

444.1 904.6

12

405.7 446.4

849.7

Asia

7.8 7.8

1,350.9

India

56.7

15.1

71.8

World

2,533.8

4

2,019.9

4,553.8

Source: IRDA Annual Report 2015-16

Despite the lower contribution to the global insurance market, India continues to occupy the bright spot India’s share in global insurance premiums stood at 1.6% in 2015, as compared to 1.5% in 2014. Of the total insurance business, India’s life insurance premiums accounted for 2.24% share of the total global life insurance premiums in 2015 as compared to 2.08% in 2014. While in terms of non-life insurance, India’s share in the global non-life insurance premium stood at a mere 0.7% in 2015. In India, the share of life insurance premiums of the total premiums stood at 79%while that of non-life insurance premiums stood at 21%. Of the total 88 countries in the global insurance market, India was ranked 10th and 18th in the life and non- life insurance business respectively in 2015. In 2015, the India’s life insurance premiums increased by 7.8% as compared to global growth of 4%, while the non-life premiums grew by 8.1% as compared to the global growth of 3.6%. While India’s share in global insurance premiums continue to be low, it also ranks low in terms of insurance penetration and density, the two important parameters that show the development of insurance sector in any country. Insurance penetration refers to premium as a percentage of GDP whereas insurance density refers to per capita premiumor premium per person. In 2015, India’s insurance density stood at US $55, way beyond the world average of US $621.

Insurance Density (US $)

0 1000 2000 3000 4000 5000 6000 7000 8000

Source: IRDA Annual Report 2015-16

The level of insurance penetration depends on a large number of factors like level of economic development of the country, the extent of the savings in financial instruments and the size and reach of the insurance sector. In 2015, the insurance penetration in India stood at 3.4% as against the world average of 6.2%. Against the world average of 3.5%, the life insurance penetration in India stood at 2.7%. On the contrary, during the same period, non-life insurance penetration in India stood at 0.7% as against the world average of 2.8%. Some of the major factors responsible for lower penetration of insurance products in India are low income levels, low consumer preference, untapped rural markets, claim-settlement time and constrained distribution channels.

LV

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