India's Insurance Premium Jumps 7.9% in 2015: Study

Insurance premium collection in India grew by 7.9 per cent in 2015 as demand for both life and non-life products was strong, a global study said today. The rate of rise in insurance premiums, life and non-life, in 2015 was significantly higher than the previous year's 1.2 per cent.

"In India, total insurance premiums grew strongly by 7.9% in 2015, compared to a contraction of 1.2% in 2014. The improved performance was aided by stronger growth in both life and non-life premiums", the report by Swiss Re sigma said. The life premium collection witnessed a turn-around in India in the last calender year, which grew by 7.8% against a contraction of 2.1% in 2014, according to the study. 
 

"The recovery was underpinned by investment-linked products which posted strong growth through bancassurance channels," said the study. Non-life premiums growth also picked-up by 8.1% compared to a growth of 2.2% in 2014. According to the report, the growth was led by stronger health, including personal accident insurance policy and motor third party liability premiums. However, the study pointed out that insurance penetration in India is still at a low level when compared to global average. "Insurance penetration in India remained low at 3.44% in 2015 compared to the global average of 6.23% reflecting large untapped potential. 
 

"Robust economic growth and government enabling policy actions/initiatives are expected to increase insurance penetration, and will act as a catalyst for future growth of the industry", Swiss Re sigma said. The report said the low level of insurance penetration in India reflects large untapped potential. Globally, the report said insurance premiums grew by 3.8% in 2015, amid variations in regional growth rates. The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based products.