It is often pointed out that life insurance penetration in India is low. In 2020, it stood at 3.2% of the gross domestic product (GDP), slightly lower than the global average of 3.3%. Insurance penetration is defined as the ratio of the total premiums paid during a given year to the GDP of the country. The interesting thing is that from 2006 to 2010, India’s insurance penetration was 4% or higher, and it was at less than 3% between 2014 and 2019.
