Global Comparison of Life Insurance Penetration
• India’s life insurance penetration has been relatively stable compared to global peers, but it has not shown the kind of dramatic shifts seen in countries like Hong Kong, Taiwan, or South Korea. Between 2014 and 2023, India’s penetration moved only moderately—from 2.6% in 2014 to a peak of 3.2% in 2020–2021, before easing slightly to 2.8% in 2023.
• This indicates that while India has maintained a steady presence above the world average in some years (global average declined from 3.4% in 2014 to 2.9% in 2023), it still lags behind developed Asian markets like Japan, South Korea, and Singapore, which consistently posted penetration levels between 5–8%, and far behind Taiwan and Hong Kong, which touched double digits. Within emerging markets, India is ahead of countries like Pakistan (0.5–0.6%), Russia (0.2–0.4%), and China (around 2%), showing that India has managed to build a stronger insurance culture compared to some peers.
| # Data is for Financial Year | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|---|---|---|---|---|
| Australia | 3.80 | 3.50 | 2.99 | 2.33 | 2.13 | 1.52 | 1.10 | 1.00 | 0.9 | 0.9 |
| Brazil | 2.10 | 2.10 | 2.28 | 2.28 | 2.10 | 2.25 | 2.30 | 2.10 | 2.1 | 2.1 |
| France | 5.90 | 6.20 | 6.06 | 5.77 | 5.75 | 5.98 | 5.10 | 6.10 | 5.5 | 5.5 |
| Germany | 3.10 | 2.90 | 2.75 | 2.63 | 2.41 | 2.64 | 2.80 | 2.60 | 2.4 | 2.1 |
| Russia | 0.20 | 0.20 | 0.25 | 0.36 | 0.47 | 0.37 | 0.40 | 0.40 | 0.3 | 0.4 |
| South Africa | 11.40 | 12.00 | 11.52 | 11.02 | 10.27 | 10.73 | 11.20 | 10.00 | 9.1 | 9.2 |
| Switzerland | 5.10 | 5.10 | 4.72 | 4.41 | 4.32 | 4.30 | 4.30 | 3.10 | 3 | 2.9 |
| United Kingdom | 8.00 | 7.50 | 7.58 | 7.22 | 8.32 | 7.99 | 8.80 | 8.90 | 8.1 | 7.1 |
| United States | 3.00 | 3.10 | 3.02 | 2.82 | 2.88 | 2.92 | 3.00 | 2.60 | 2.6 | 2.6 |
| Hong Kong | 12.70 | 13.30 | 16.20 | 14.58 | 16.81 | 18.26 | 19.20 | 17.30 | 16.7 | 14.8 |
| India# | 2.60 | 2.72 | 2.72 | 2.76 | 2.74 | 2.82 | 3.20 | 3.20 | 3.0 | 2.8 |
| Japan# | 8.40 | 8.30 | 7.15 | 6.26 | 6.72 | 6.69 | 5.80 | 6.10 | 5.9 | 6.8 |
| Malaysia# | 3.10 | 3.40 | 3.15 | 3.32 | 3.32 | 3.35 | 4.00 | 3.90 | 3.7 | 3.7 |
| Pakistan | 0.50 | 0.50 | 0.63 | 0.60 | 0.68 | 0.61 | 0.50 | 0.50 | 0.6 | 0.5 |
| PR China | 1.70 | 2.00 | 2.34 | 2.68 | 2.30 | 2.30 | 2.40 | 2.10 | 2 | 2.1 |
| Singapore | 5.00 | 5.60 | 5.48 | 6.64 | 6.22 | 5.96 | 7.60 | 7.50 | 7.4 | 7.4 |
| South Korea# | 7.20 | 7.30 | 7.37 | 6.56 | 6.12 | 5.84 | 6.40 | 5.80 | 5.4 | 5 |
| Sri Lanka | 0.50 | 0.50 | 0.52 | 0.54 | 0.54 | 0.55 | 0.50 | 0.60 | 0 | 0 |
| Taiwan | 15.60 | 15.70 | 16.65 | 17.89 | 17.48 | 16.51 | 14.00 | 11.60 | 8.2 | 7.1 |
| Thailand | 3.60 | 3.70 | 3.72 | 3.59 | 3.59 | 3.28 | 3.40 | 3.40 | 3.4 | 3.4 |
| World | 3.40 | 3.50 | 3.47 | 3.33 | 3.31 | 3.35 | 3.30 | 3.00 | 2.8 | 2.9 |
Units: %
• However, the flattening of penetration after 2020 suggests challenges in sustaining momentum, possibly due to post-pandemic pressures, low awareness in rural areas, and competition from alternative savings products. The relatively modest growth also indicates that despite India’s large population and rising middle class, insurance penetration has not yet scaled up in proportion to income growth.
• This highlights significant untapped potential: with deeper financial inclusion, regulatory support, and digital channels expanding distribution, India could push penetration closer to Asian benchmarks.
• In short, India stands at a mid-level position—stronger than several emerging economies but still far behind advanced Asian markets—signaling room for rapid expansion if policy, distribution, and consumer awareness align effectively.
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