The COVID-19 pandemic has resulted in increased insurance penetration in India, according to data from Swiss Re.
The global reinsurer’s sigma report on world insurance indicated that India’s insurance penetration grew from 3.76% in FY20 to 4.2% in FY21. Both life and non-life insurance segments registered increases in the 12-month period, Times of India reported.
Life insurance penetration improved from 2.8% to 3.2%, while non-life penetration increased from 0.94% to 1%.
The COVID-19 crisis, particularly the deadly Delta variant wave that swept through India around May, has driven demand for medical and life insurance. Swiss Re’s survey showed that between 30% and 40% of respondents bought additional life and health insurance during the pandemic, and between 25% and 50% look to increase their coverage.
The non-life segment has also seen improved performance in recent months. For the first quarter of FY22 (April to June), non-life GWP grew by 14%. Fire insurance premiums grew 20%, while motor grew by 9%.
While insurance penetration in India remains low, especially compared to advanced markets, the market is seen as having huge potential for growth, even before the pandemic, due to its young population and growing middle class.