Insurance penetration in India at 3.9 percent was below the world average of 6.3 percent in 2013, Parliament was informed on Tuesday.
“The penetration for the insurance sector as a whole in the year 2013 was 3.9 percent in India, as against world average of 6.3 percent,” minister of state for finance Jayant Sinha said in a written reply to Rajya Sabha.
The level of insurance penetration depends on a large number of factors like level of economic development of the country, the extent of the savings in financial instruments and the size and reach of the insurance sector, he said.
Insurance penetration, measured as the ratio of premium to Gross Domestic Product, was 3.1 percent of life insurance and 0.8 percent for general insurance in 2013, he added.
Health insurance is a part of general insurance. In relation to BRICS countries, India’s insurance penetration was better than China and Russia but well below South Africa and only a tad lower than Brazil.
The insurance penetration of South Africa stands at 15.4 percent (in 2013); China 3 percent; Brazil 4 percent and Russia 1.3 percent.
Amongst the G20 countries, it is highest for South Africa (15.4 percent) followed by South Korea (11.9 percent); the UK (11.5 percent); Japan (11.1 percent); France (9 percent); Italy (7.6 percent); the US (7.5 percent); Canada (6.9 percent); Germany (6.7 percent); and Australia (5.2 percent).
Those falling below India are : Argentina (3.6 percent); Mexico (2.1 percent); Indonesia (2.1 percent); Turkey (1.5 percent); and Russia (1.3 percent).