Insurance Penetration means ‘Insurance Sector Development’ within a country. It is calculated as percentage of insurance premium to GDP. The penetration takes place in two segments which are non-life insurance segment and life insurance segment. As per report in financial year 2018, the non-life insurance segment was 0.94% and the life insurance segment was 2.82%. Both private and public insurance companies could penetrate 3.76% of the entire population of India as per the report in 2019. This figure is poorer than that of Malaysia, Thailand and China the penetration of which is 4.72, 4.99 and 4.30 percent respectively. On the international level, India’s insurance penetration was 3.35 percent for the life segment and 3.88 percent for the non-life segment in 2019. The insurance density, which is calculated as ratio of insurance premium to population, reached to $78 in 2019 as against $11.5 in 2001. This data is extremely low as compared to global average and other comparable countries.
