The Indian insurance industry -- life and non-life -- logged 7.9% premium growth in 2015 as against the global industry premium growth of 3.8%, said Swiss Re.
Swiss Reinsurance Company Ltd, generally known as Swiss Re, is a reinsurance company based in Zurich, Switzerland.
In a statement Swiss Re said, “In India, total insurance premiums grew strongly by 7.9% in 2015, compared to a contraction of 1.2% in 2014. The improved performance was aided by stronger growth in both life and non-life premiums.”
The global reinsurance major said life premiums growth witnessed a turnaround in India, growing by 7.8% in 2015, compared to a contraction of 2.1% in 2014.
According to the report, the recovery in the Indian life insurance market was underpinned by investment-linked products which posted strong growth through bancassurance channels.
As regards the non-life, the sector logged 8.1% growth in premium in 2015 compared to a growth of 2.2% in 2014.
Growth was led by stronger health (including personal accident (PA)) and motor third party liability (MTPL) premiums, Swiss Re study said.
However, the insurance penetration in India remained low at 3.44% in 2015 compared to the global average of 6.23%, reflecting large untapped potential.
Robust economic growth and Government enabling policy actions/initiatives are expected to increase insurance penetration and will act as a catalyst for future growth of the industry, Swiss Re said.