India’s Leading BFSI and FinTech Companies 2021

42 Indian Insurance Sector 0 10 20 30 40 50 60 70 0 1 1 2 2 3 3 4 4 5 5 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 USD % Indian i nsurance market: penetration& density Life penetration (%) Non-life penetration (%) Life density (USD) Non-life density (USD) Insurance Penetration & Density in India India’s total insurance penetration improved slightly to 3.8% in 2019 from 3.7% in 2018, mainly due to improvement in life-insurance penetration. While life insurance penetration increased to 2.8% in 2019 from2.7% in 2018, non-life insurance penetration declined slightly to 0.94% in 2019 from 0.97% in 2018. Total insurance density also improved to US$ 78 in 2019 from US$ 74 in 2018 on the back of increase in insurance density of life insurance segment to US$ 58. Insurance density for non-life remained stagnant at US$ 19 in 2019. Life Insurance 0 500 1000 1500 2000 2500 3000 3500 Fir st Year Premium Single Premium Renewal Premium Fir st Year Premium Single Premium Renewal Premium FY19 FY20 ` bn Segment-wise premiumunderwritten by life i nsurers LIC Private Sector India’s life insurance sector recorded premium of ` 5.7 trillion in FY20, which translates into growth of 12.8% during the year (as against 10.8% in FY19). While the public sector insurer (LIC) reported 12.4% growth in premium income in FY20, private sector insurers reported 13.4% growth. New business premium which witnessed growth of 20.6% in FY20 as against 10.7% in FY19 mainly contributed to the growth in the life insurance sector. On the other hand, growth in premium renewal decelerated to 7% in FY20 from 10.8% in FY19. Within new business premium, first year premium witnessed a robust growth of 39.7% in FY20 as against 11.4% in FY19. Amongst all products, unit-linked products (ULIPs) registered a relatively lower growth of 9% as against the traditional products which reported a growth of 13.4% in FY20. In case of new policies issued by life insurers, while LIC reported a growth 2.3% in the number of new policies issued in FY20, the private sector registered a decline of 4%. LIC accounted for 76% of total new policies issued in FY20. Dun & Bradstreet