According to a survey by Benori Knowledge, the Indian life insurance market expanded at a compound annual growth rate (CAGR) of 11per cent for total premiums and 17per cent for new business premiums between 2017 and 22.

According to the international provider of specialised research and analytics solutions, the industry will expand at a CAGR of 9 per cent through 2027.

Benori Knowledge also discovered that India’s life insurance penetration rate increased from 2.8per cent in December 2019 to 3.2per cent in December 2021, nearly matching the 3.3per cent global average.

India ranks 10th in the world’s life insurance market with a penetration rate of 3.2per cent, ahead of China (at 2.4per cent) and the UK (at 3 per cent).

This is anticipated to rise in the upcoming years because of several factors, including shifting consumer perceptions of and realisation of financial security, regulatory easing regarding product approval and distribution, product customisation, a balanced channel mix, and corporate digitalisation initiatives.

The analysis by Benori Knowledge stated that the volatility of the COVID-19 epidemic “highlighted the requirement for customers to invest in goods that would promote financial security, one of which is life insurance.”

Benori conducted a quick survey to understand customer preferences about life insurance better and discovered that 70per cent of respondents cited financial security for their families as the main driver for buying life insurance.
About 91per cent of those polled claimed that their view of life insurance has shifted from investment to protection.

Furthermore, 23per cent purchased their coverage online, including through bank portals, web aggregators, and direct purchases through websites, while 55per cent stated they got it through an insurance agent.

Although the survey highlighted the agent’s value, insurance companies came in second among the distribution channels.