Reply To: Insurance penetration and density
manveena
Insurance penetration and density are the two measures to check the performance of the insurance sector in an economy.
Penetration is the ratio of annual premium to GDP of an economy. Density is the ratio of the annual premium to the total population of an economy. Higher the ratios, better the performance of the insurance sector in that country.
However, the main thing to look into is these ratios further depend on the characteristics of the individuals that constitute the economy such as gender, age, smoker/non smoker, occupation, etc.
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Can you also share the current insurance penetration and density of India.
According to IRDAI latest reports, the penetration rates have been 0.93% and 2.76% for non life and life insurance respectively in 2017-2018. Insurance density has been $18 and $55 for non life and life insurance respectively for the same period.
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