Insurance Penetration Falls to 3.7% in 2023-24

India’s insurance penetration fell from 4% in 2022-23 to 3.7% in 2023-24. The Insurance Regulatory and Development Authority of India (IRDAI) reported this decline despite efforts to expand insurance coverage. Life insurance penetration dropped from 3% to 2.8%, while general insurance penetration remained steady at 1%.

IRDAI urged insurance companies to work towards “Insurance for All” by 2047. The report highlighted that insurance density, which measures the level of development of the insurance sector, increased slightly from $92 to $95. Non-life insurance density rose from $22 to $25, while life insurance density stayed at $70.

Globally, insurance penetration was 7% in 2023, with developed economies like the US, South Korea, and the UK having higher penetration rates of 11.9%, 11%, and 9.7%, respectively.