Penetration rises to 3.49%: Swiss Re

Insurance penetration in India saw a rise to 3.49 percent from 3.40 percent in financial year 2017 (FY17), according to the sigma report by global reinsurer Swiss Re. Life insurance penetration stood at 2.72 percent while general insurance penetration stood at 0.77 percent.

Insurance density or the premium per capita stood at USD59.7 in India in FY17. The average for Asia stood at USD 343.1 while the global average was USD 638.3.

Global insurance premiums increased by 3.1 percent in real terms in 2016, a fairly solid outcome in an environment of moderate global economic growth, Swiss Re Institute’s latest sigma report stated. The report said that the main cause of the weaker global premium development compared to 2015 were the advanced economies but growth in many emerging markets – excluding China – slowed also.

Global life premium growth slowed to 2.5 percent in 2016 from 4.4 percent in 2015 as advanced market premiums contracted, while life premiums in the emerging regions together grew by more than double the long-term average. On the non-life side, global premiums grew 3.7 percent in 2016.

The total insurance premium volume in India stood at USD79311 compared to the global average of USD4732188. The world average for insurance penetration is 6.28 percent.

According to the report, in India, life premiums grew by 8 percent due to surging demand for immediate annuity plans — this in part is driven by demonetisation, according to a report in Money Control.

It also said that the surprise demonetisation of high-value notes in November 2016 is likely to have slowed growth at the end of the year, but the main impact will only be felt in 2017.