A Study on Penetration in Indian Life Insurance Sector

India's life insurance market has grown at more than 40% annually. But the ratio of insurance premium to GDP is around 4%. Penetration is very low, practically zero in the unbanked segment. For the industry, premium income is likely to go up sharply. A well developed and evolved insurance sector is a boon for economic development of a country. The insurance sector was a significant contributor to the capital market thereby lending support to the stability of capital markets. It provides long-term funds for infrastructure development and concurrently strengthens the risktaking ability of the country. There are certain factors that need to be considered by the Indian insurance industry to ensure a seamless growth in business like distribution channels, focus on financial inclusion. The present study is on the trends in the insurance sector in premium underwritten and insurance density and penetration.