An Analysis of the Growth of Indian Insurance Industry with Reference to Top Ten Economies of the World

Abstract

With the insurance sector in full bloom, today, it would not be wrong to say that in the present market scenario, thereis an insurance available for just about anything and everything. Insurance is no doubt an area of immenseimportance with regard to the financial and monetary sectors of every individual. The whole idea behind insurance is,it is a security tool which is designed to secure the financial status of an individual and also of his/her dependents, incase he/she undergoes an unforeseen loss related to health, property or liability. Insurance sector in India has beengrowing continuously after its opening up for private players in 1999. Therefore an attempt has been made in thispaper to study the growth of Indian insurance sector with reference to the growth of insurance sector in top teneconomies of the world. To study the growth and opportunities in the insurance sector, premium income, growth inpremium income, insurance density and insurance penetration have been measured. The measure of insurancepenetration and density reflects the level of development of insurance sector in a country. While insurancepenetration is measured as the percentage of insurance premium to GDP, insurance density is calculated as the ratioof premium to population.