Indian insurance industry: Evolution of life and non-life premiums (2014-2018)

Life insurance is the market leading class of business with 73.018 billion USD in premiums recorded at the end of March 2019. During the 2014-2018 period, life premiums increased by 39.5%. However, this sector is seeing a decline in its market share. From 84.45% in 2012, this percentage decreased to 79.48% in 2015 and to 74.99% as of March 31, 2019.

India non-life insurance [4], boosted by foreign investment, jumped 80% over the same period. Premiums stood at 24.349 billion USD at 31 March 2019 compared to 13.507 billion USD at the end of the 2014-2015 fiscal year.

The non-life insurance market share has continued to increase over the past five years, from 20.52% to 25%.

In billions USD

	2014	2015	2016	2017	2018	2017-2018 evolution	2018 shares
Non-life premiums	13.507	14.534	19.745	23.157	24.350	5.15%	25.01%
Life premiums	52.332	55.335	64.487	70.519	73.018	3.54%	74.99%
Total life and non life	65.839	69.869	84.232	93.676	97.368	3.94%	100%

Highlights as at 31 March. The fiscal year runs from 1 April of the year Y to 31 March of Y+1.

Density and insurance penetration rate in India

Insurance density

From 2001 to 2018, that is in 17 years, the density of insurance in India continued on an upward curve. It went from 576 INR (13.25 USD) in 2001 to 5 009 INR (71.97 USD) in 2018, life and non-life insurance combined.

After experiencing a period of rapid growth, the density of insurance stabilized from 2010 around 2 700 INR (52 USD) during the period 2010-2012. It is only from 2013 that this indicator will experience a new rebound.

In detail, the life activity is experiencing an evolution almost similar to that of the global industry in terms of insurance density. It went from 466 INR (10.72 USD) in 2001 to 3 756 INR (53.97 USD) in 2018.

Non-life insurance posted a density of 1 253 INR (18 USD) in 2018, compared to 110 INR (2.53 USD) in 2001. This important advance is due to the emergence of a middle class that uses financial products to protect itself.

Evolution of density: 2001-2018 *

	Life		Non-life		Total
	In INR	In USD	In INR	En USD	In INR	In USD
2018	3756	53.97	1253	18.00	5009	71.97
2017	3427	52.67	1125	17.29	4552	69.96
2016	3158	48.66	967	14.90	4125	63.56
2015	2801	42.24	736	11.10	3537	53.34
2014	2532	40.39	653	10.42	3185	50.81
2013	2454	40.98	605	10.10	3059	51.08
2012	2269	41.52	497	9.10	2766	50.62
2011	2297	44.10	423	8.12	2720	52.22
2010	2363	52.06	345	7.60	2708	59.66
2009	2179	48.40	284	6.30	2463	54.70
2008	1847	35.41	253	4.85	2100	40.26
2007	1702	42.65	235	5.89	1937	48.54
2006	1340	30.85	214	4.93	1554	35.78
2005	922	21.23	177	4.07	1099	25.30
2004	733	16.87	155	3.57	888	20.44
2003	599	13.79	140	3.22	739	17.01
2002	510	11.74	134	3.08	644	14.82
2001	466	10.73	110	2.53	576	13.26

* Highlights as at 31 March. The fiscal year runs from 1 April of the year Y to 31 March of Y+1.
Source: Atlas Magazine

Insurance penetration rate

Like insurance density, the penetration rate has also been going up and down during the period studied. This indicator rose from 2.67% for all activity in 2001 to 3.56% in 2018, after posting a rate of 4.71% in 2009.

It is life insurance that draws the insurance business in India with higher rates than non-life. From 2.16% recorded in 2001, this rate reached 4.11% in 2007 and 4.17% in 2009 before falling to 2.67% in 2018.

In non-life insurance, the penetration rate increased by 75%, going from 0.51% in 2001 to 0.89% in 2018.

Evolution of penetration rate: 2001-2018 *

	Life	Non-life	Total
2018	2.67%	0.89%	3.56%
2017	2.68%	0.88%	3.56%
2016	2.72%	0.83%	3.55%
2015	2.66%	0.70%	3.36%
2014	2.63%	0.68%	3.31%
2013	2.80%	0.69%	3.49%
2012	2.89%	0.63%	3.52%
2011	3.29%	0.61%	3.90%
2010	3.82%	0.56%	4.38%
2009	4.17%	0.54%	4.71%
2008	4.02%	0.55%	4.57%
2007	4.11%	0.57%	4.68%
2006	3.67%	0.59%	4.26%
2005	2.92%	0.56%	3.48%
2004	2.60%	0.55%	3.15%
2003	2.39%	0.56%	2.95%
2002	2.24%	0.59%	2.83%
2001	2.16%	0.51%	2.67%

* Highlights as at 31 March. The fiscal year runs from 1 April of the year Y to 31 March of Y+1.
Source: Atlas Magazine