Analysis of penetration and density of the Indian insurance industry

Abstract

At present, India’s insurance industry rank tenth in the world and it is expected that by the end of the year 2032, the insurance industry will attain the sixth position in the world. Analysis of insurance density and penetration is essential to assess the progress of insurance business of any country. The present study is based on secondary data and the data was collected from the annual reports of IRDAI. For the purpose of analysis three groups were made of the selected companies. First group represented the Insurance Industry, the second group was life insurers and the third was made of non-life insurance companies. Growth and trend analysis of twenty one years from 2001-02 to 2021-22 had been done to compare the growth of the selected companies. Further, to test the validity of the hypothesis, ANOVA has been used on SPSS. The study revealed the significant difference in the mean score of all three groups. During the research, it was found that the density and penetration both have significantly increased.