India, April, 28, 2013
“India is one of the most under-insured countries in the world as non-life insurance sector has a penetration of only 0.7% in the country,” said Finance Minister P Chidambaram during an event in New Delhi on Wednesday, April 24, 2013.
Chidambaram believes that the general insurance industry in India should take an immediate action to increase its reach in the country. “There is a need to increase the insurance density in the country as well,” he added. India’s current general insurance density is nearly $9, and that of China is bit more than $50.
Insurance penetration and density are among the two major factors used across the world to analyze the growth of insurance industry in a country.
At present, India has 27 general insurance companies. In India, the government opened the general insurance sector to the private players in 2002. Since then, the general insurance sector in India has shown speedy growth. This sector is regulated by the Insurance Regulatory and Development Authority (IRDA) in India.