While the global penetration of life insurance coverage is 3.47 per cent of the population, India has a life insurance penetration of 2.72 per cent. Western countries aside, India has lower insurance penetration of its population even when compared with some Asian countries such as Thailand, Taiwan, Hong Kong and Malaysia.
Insurance penetration is measured as the ratio of total premiums underwritten in a particular year to the GDP of the country. Experts say, that in India, simplification and digitisation of life insurance policies can play a major role in increasing the life insurance penetration levels in the country.
