Is Microinsurance Made for India?
By Vanita D’souza
Insurance is one of the most vital sectors in India’s financial inclusion plan and yet it is one of the most ignored product lines in the country.
According to the Economic Survey 2018, the insurance penetration or the ratio of premium underwritten to the GDP was 3.49 percent in 2016-17 while other Asian countries such as China and Malaysia had higher insurance penetration rate of 4.77 percent while Thailand boosted of 5.42 percent. On the other side, India’s life insurance density is $46.5 and general insurance density is $13.2 as against a global average of $353 and $285.3, respectively.
These numbers only speak of the immense potential of the insurance sector, which is why IBEF notes that the segment is expected to reach $280 billion by 2020 – but why is it lagging behind currently.
Photo courtesy of Satish Krishnamurthy.