Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Non-Life Insurance Penetration in India is Woefully Low
Sep 15, 2017

Despite being the second most populated country in the world after China, demand for risk cover products remains low. As per Crisil Research, the non-life penetration in India is among the lowest with premium income forming 0.8% of the GDP in 2016. This is quite low as compared to the global average of 2.8%. In fact, India lags behind China and Brazil, each having non-life insurance penetration of 1.8%. As per Swiss Re, India is the fifteenth largest market in the world and fourth largest market in Asia.

The non-life insurance sector in India is valued at Rs 1.28 trillion and has been growing at a compounded annual growth rate of 17.4% in the last 16 years. Demand drivers such as rapid urbanisation, rising disposable income, increasing risk awareness emergence of new risks such as cyber frauds and regulatory focus on improving insurance coverage are expected to accelerate growth ahead.

So it hardly comes as a surprise that the insurance industry is actively seeking to capitalise on the current IPO frenzy. After ICICI Prudential got listed last year, a number of both life and non-life insurance companies have lined up their IPOs this year.

Speaking of IPOs, ICICI Lombard General Insurance Company's initial public offering opens today. It is among the first life insurance companies to commence operation in 2002 and is the market leader among private sector players. Is the IPO worth considering? Does the company have strong fundamentals? What about valuations and growth potential? Equitymaster Insider Ankit Shah has the answers.

To know more, get on the Insider list now.

Data Source: Swiss Re, Crisil Research 2016

This Chart Of The Day was published in The 5 Minute WrapUp - What is Chauffeur Knowledge Doing to Housing Finance Stocks?

Equitymaster requests your view! Post a comment on "Non-Life Insurance Penetration in India is Woefully Low". Click here!


Our Most Popular Charts

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms