Mumbai: The pandemic has increased the potential for health and life insurance in India. According to Swiss Re’s Sigma report on World Insurance, insurance contribution to GDP has risen to 4.2% in FY21 from 3.76% in FY20. Insurance penetration (premium as a percentage of GDP) for both life and non-life insurance has seen an increase during the pandemic.
While life penetration has increased from 2.8% to 3.2%, the non-life play has increased to 1% from 0.94% last year. In non-life, India’s ranking has improved by one place despite premium shrinking in dollar terms. This is because Brazil, which was in 13th place, slipped sharply as its business shrunk 20% in dollar terms.
According to the survey, many feel underinsured, despite most owning medical and life insurance. Between 30% and 40% of the respondents purchased additional life and health insurance during the crisis, and 25-50% still intend to buy new policies. “The intent was higher in emerging Asia (56%), particularly India, Vietnam and China (70%) versus advanced Asia (average: 20%),” Swiss Re said.