India has recorded an insurance penetration of 2.74%, surpassing China but remaining far behind mature markets such as Taiwan and Hong Kong.

According to the Insurance Regulatory and Development Authority of India (IRDAI), India exceeded China’s penetration rate of 2.34% in 2017, and is just behind Australia (2.99%) and the US (3.02%).

But compared to well-insured markets such as Taiwan (16.65%), Hong Kong (16.20%), the UK (7.68%), and France (6.06%), India’s current level is very low, according to a report by Money Guru India.

IRDAI data showed that the increase in India’s insurance penetration is due to higher uptake of general insurance, especially motor and health insurance. General insurance grew by 31% in the financial year, compared to just 14% for the life insurance industry.

However, in terms of insurance density, which is the amount of premiums paid per capita, India, which has a density of US$46.50 per capita, remains quite far behind China, which has coverage of US$189.90 per person. By comparison, mature markets such as the UK and the US have insurance densities of US$3,033 and US$1,724, respectively.

Related stories:
India’s regulator to issue more general re/insurance licences
Malaysia’s insurance penetration issues linger
China to allow viatical settlement on trial basis