New Delhi, July 21 (Inditop.com) Despite achieving a healthy 16 percent annual growth rate, India’s general insurance business accounts for just 0.6 percent of the gross domestic product (GDP), compared to the world average of 2.14 percent, says a report released here Tuesday.
“The penetration of general insurance in India remains low on account of low consumer preference, largely untapped rural markets and constrained distribution channels,” said the report jointly prepared by Crisil and the Associated Chambers of Commerce and Industry of India (Assocham).
“India ranks 136th on penetration levels and lags behind China (106), Thailand (87), Russia (86), Brazil (85), Japan (61) and the US (9),” it said.
General insurance in India is a Rs.300 billion business in terms of annual premia.
It grew by an average 16 percent in the past five years, Assocham said.
The growth was led by motor insurance and health insurance which grew by 16 percent and 37 percent, respectively.
Releasing the paper, Assocham president Sajjan Jindal said: “One of the biggest constraints facing the general insurance business is the lack of reach beyond the cities.”
