With a population of 1.39 billion and counting as of July 2021, India ought to have ranked among the world’s most lucrative markets for insurance products. However, the penetration of the insurance sector in India (that is, premiums as a percentage of its GDP) stands at 4.2 per cent, much lower than the world average of 7.4 per cent, thereby indicating that India remains an untapped market for insurance products.
Over the last couple of decades, India’s distinctive measures to ease capital controls and attract foreign direct investment (FDI) have paved the way for positioning the country as a preferred destination for FDI. Notwithstanding this progress, the insurance sector has trailed behind other consumer-centric sectors of the economy.
Please click here to read the full article by Sidharrth Shankar published in The Hindu Business Line.