What is insurance density?

Insurance density, along with insurance penetration, is a key measure used to assess the level of development of a country’s insurance sector. It is the ratio of premiums collected by insurance companies to the country’s population. Expressed typically in dollar terms, it represents the per capita premium. India’s insurance density in 2021 was $91 ($69 for life insurance and $22 for general), which is well below the global average of $874. Both in terms of life and general insurance density, India is well behind developed economies such as US and Canada, Advanced EMEA (Europe, Middle East and Africa) and Advanced Asia Pacific (Japan, Korea, Australia, New Zealand, Singapore and Taiwan).