India’s insurance penetration slumps to 3.7% in FY 23-24

Insurance density in India rose slightly, from $92 in FY 22-23 to $95 in FY 23-24. 

India's insurance penetration decreased to 3.7% in the fiscal year 2023 to 2024 (FY 23-24), compared to 4% in the previous year, according to the Insurance Regulatory and Development Authority of India's (IRDAI) latest annual report.

Life insurance penetration declined from 3% to 2.8%, whilst non-life insurance penetration remained unchanged at 1%.  

Insurance density in India rose slightly, from $92 in FY 22-23 to $95 in FY 23-24. 

Non-life insurance density increased from $22 to $25, whilst life insurance density held steady at $70. 

This upward trend in insurance density has been consistent since 2016-17.  

The life insurance industry recorded a premium income of ₹8.30 lakh crore in FY 23-24, marking a 6.06% growth. 

In the non-life insurance sector, the total direct premium underwritten in FY 23-24 stood at ₹2.90 lakh crore, a 12.76% increase from the previous year.