Page 39 - Insurance Times January 2023

in real terms. Non-life premium growth in emerging markets insurance premium was 56.31 per cent during 2021.
will likely outstrip that in advanced economies in next two years, However, the share of life insurance business for India was
mainly driven by the strong demand for short-term health high at 76.14 per cent while the share of non-life insurance
insurance. Growth in commercial lines will be stronger than in business was at 23.86 per cent.
personal lines of business.
Premium Volume by Region in the World
Global life premium is expected to contract in real terms in
in 2021
2022 but in nominal terms, it is expected to grow at 4.8
(USD Billions)
per cent to USD 3.1 trillion in 2022. Inflationary pressures,
economic uncertainty and financial markets condition are Regions Life Non-Life Total
the primary drivers of subdued premium growth in 2022.
Advanced markets 2,323.20 3,241.12 5,564.32
Saving premiums, which represent more than three quarters
(41.75) (58.25) (100.00)
of the life sector, will likely suffer from volatile financial
Emerging markets 674.37 621.90 1,296.28
market conditions and falling disposable incomes.
(52.02) (47.98) (100.00)
Heightened risk awareness post pandemic is driving demand
Asia-Pacific 1,129.25 707.75 1,837.00
for protection-type products, and insurers are changing
(61.47) (38.53) (100.00)
their business models to be digital-ready. Further, higher
interest rates will support demand for guaranteed savings India 96.68 30.30 126.97
products. In 2023, it is expected that global life premium (76.14) (23.86) (100.00)
growth will recover to 1.9 per cent in real terms as inflation World 2,997.57 3,863.03 6,860.60
pressures ease and economic conditions improve. (43.69) (56.31) (100.00)

Indian Insurance in the Global Scenario Note: Figures in bracket indicate share of the segment to
As per Swiss Re data, India ranks tenth (eleventh in 2020) total in per cent.
Source: Swiss Re, Sigma 4/2022
in global insurance business with a market share of 1.85 per
cent in 2021 (1.78 per cent in 2020). Total insurance
premium in India increased by 13.46 per cent (7.8 per cent Insurance Penetration and Density
inflation adjusted real growth) in 2021 whereas global total Insurance penetration and density are two metrics, among
insurance premium increased by 9.04 per cent (3.4 per cent others, often used to assess the level of development of the
inflation adjusted real growth) during the year. insurance sector in a country. While insurance penetration
is measured as the percentage of insurance premium to
In life insurance business, India is ranked ninth (tenth in GDP, insurance density is calculated as the ratio of premium
2020) in the world in 2021. India's share in global life to population (per capita premium).
insurance market was 3.23 per cent (3.11 per cent in 2020)
during 2021. Life insurance premium in India increased by
Insurance penetration in India during 2021-22 was 4.2 per
14.16 per cent (8.5 per cent inflation adjusted real growth)
cent remained same as in 2020-21. During the first decade
in 2021 whereas global life insurance premium increased by
of insurance sector liberalization, the sector has reported
9.91 per cent (4.5 per cent inflation adjusted real growth).
increase in insurance penetration from 2.71 per cent in 2001-
02 to 5.2 per cent in 2009-10. Since then the level of insurance
In non-life insurance business, India is ranked fourteenth in
penetration declined till 2014-15 due to decline in life
the world same as last year. India's share in global non-life
insurance penetration. However, the insurance penetration
insurance market was 0.78 per cent (0.76 per cent in 2020) started again increasing from 2015-16 and reached 4.20 per
during 2021. The Indian non-life insurance sector recorded
cent in 2021-22. While the penetration of life insurance sector
11.30 per cent (5.8 per cent inflation adjusted real growth) has gone up from 2.15 per cent in 2001-02 to 3.2 per cent in
growth during 2021 whereas the global non-life insurance 2021-22, non-life insurance penetration has gone up from
premium had only 8.37 per cent growth (2.6 per cent 0.56 per cent to 1.0 per cent during the same period.
inflation adjusted real growth).
Insurance density in India increased from USD 78 in 2020-
Globally, the share of life insurance business in total 21 to USD 91 in 2021-22. The level of insurance density has
premium was 43.69 per cent and the share of non-life reported consistent increase from USD 11.5 in 2001-02 to

34 January 2023 The Insurance Times