A study on Indian insurance in the Global Scenario

India's insurable population is expected to grow to 750 million and life expectancy to 74 years by 2020. As a result, life insurance, which is the second most preferred financial instrument in India, would contribute to an estimated 35 per cent of total savings in the next seven years, compared with a meager 26 per cent in 2010. In life insurance business, India is ranked 10th among the 88 countries, for which data are published by Swiss Re. during 2012, the life insurance premium in India declined by 6.9 per cent (inflation adjusted). During the same period, the global life insurance premium increased by 2.3 per cent. India's share in global life insurance market was 2.03 percent during 2012, as against 2.30 per cent in 2011. Over the last 10 years, the penetration of non-life insurance sector in the country remained steady in the range of 0.5–0.7 per cent. However, its density has gone up from USD 2.4 in 2001 to USD 10.5 in 2012. Insurance density which reached the maximum of USD 64.4 in the year 2010 from the level of USD 11.5 in 2001. During the year under review 2012–13 the insurance density was USD 53.2. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market.