At 3.2 % penetration, India ranks 10th in the global life insurance market and ahead of China (at 2.4%) and UK (at 3%), shows a research report published by Benori Knowledge, a research and analytics company.
The report shows that the life insurance penetration rate in India has grown from 2.8% in December 2019 to 3.2% in December 2021, almost at par with the global average of 3.3%.
The penetration is expected to increase in the coming years as people are realizing importance of financial security. Also, the ease of IRDAI regulations on product approval and distribution and adoption of digitalization will further boost the penetration, says the report.
During 2017-22, the life insurance industry has grown at a CAGR of 11% in total premium and 17% in new business premium. It is estimated to grow at a CAGR of 9% until 2027.
Other key highlights of the report: