Is India covered? The insurance stats you need to see

New 100 percent FDI rules invite global capital to bridge the gap and achieve insurance for all

Dec 18, 2025, 17:25 IST1 min

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General insurance penetration reached 1 percent of GDP in FY24, showing a steady climb from 0.9 percent in FY20. Meanwhile, insurance density (premium per capita) has increased by about 32 percent, moving from $19 to $25 in the same period.

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While the sector has grown in absolute terms, India’s general insurance penetration is significantly trailing the 4.2 percent global average and 8.9 percent North American benchmark, ICRA data shows.

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Despite a minor recovery to 2.2 percent in FY24 from the FY23 dip, insurance remains a tiny fraction of the Indian savings pie.

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While density (premium per person) for life insurance remains at an all-time high of $70, penetration has fallen for the second consecutive year to 2.8 percent.

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As overall household health insurance coverage increased from 28.7 percent in NFHS-4 to 41 percent in NFHS-5, the lowest wealth index saw the highest percentage point increase (14.5 points) compared to any other group. Moreover, the gap between the richest and poorest households has narrowed from a 9 percentage point difference to just 4.7 points in same period.

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India’s sum assured at 24 percent of GDP drastically trails global leaders like Singapore, highlighting a massive national protection gap. Indian households are severely under-protected against mortality and health risks.