LIC, GIC, UII Essay on Role of Insurance Sector in Economic Development

GIC 2021

Dear Aspirant,

Good score in Descriptive English Paper in Insurance Exams plays a crucial role in final selection as this paper creates difference. Hence, do attempt to write essays in an effective manner and what you have written should be duly evaluated by some expert for improvement. The following is an essay on ‘The role of Insurance Sector in Economic Development of India’ (500 words).


India is the 5th largest life insurance market in the emerging insurance economies in the world. It is growing at a healthy rate of 32-34% annually. But, it had only 1.92% share in global insurance during financial year 2018-19 and it could penetrate only about 3.71% market in India so far. In this way, it provides tremendous growth potential in India for domestic and foreign investors. This is the reason why the government has allowed 74% FDIs in this sector in the financial year 2021-22, which will prove to be a fillip in its further growth. Much employment generation is thus most likely in this sector.

In India, there are 57 insurance companies out of which 24 are there in the life insurance business whereas 33 in non-life insurance. The overall market size was expected to US$ 280 billion 2020. The government’s policy of the uninsured has gradually pushed insurance penetration………

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