Penetration of life and non-life insurance in India FY 2002-2023

In the financial year 2023, India’s insurance penetration stood at 4 percent, with the majority coming from the life insurance sector. The growth in penetration over the last five years is a positive sign for the overall development and maturity of the insurance market in India.

Life insurance in India

Income and employment stability, awareness and education, accessibility to insurance services, and government policies have played a crucial role in shaping the landscape of life insurance in India over the last two decades. In the financial year 2022, approximately 22 million new policies were issued by Life Insurance Corporation of India (LIC) - a public sector insurer. Indian insurers had written a total life insurance premium amounting to 6.93 trillion Indian rupees in the same fiscal year.

Non-life insurance in India

A non-life insurance or general insurance policy covers property, businesses, and individuals and it provides coverage for damages on an indemnity basis. In recent years, an increasing trend has been seen in the number of non-life insurance policies sold in India. This can be attributed to increased demand and awareness for health and motor insurance, higher disposable income, more transactions in fire, marine, and export credit segments, and the introduction of new and customizable non-life insurance products.