India: To double the penetration rate, the insurance industry requires an annual capital injection of $6 billion.


According to Mr. Debasish Panda, chairman of the IRDAI, the insurance industry will require a capital infusion of INR500 billion ($6.2 billion) annually to double its penetration within the next five years.


He stated that an examination of current GDP growth, inflation, and penetration had been used to arrive at the number. As of the 31st of March in 2021, the overall insurance penetration rate was 4.2 percent.


According to Press Trust of India, he addressed an annual insurance and pension summit hosted by the Confederation of Indian Industry and urged business conglomerates to invest in the insurance industry, stating that the return on equity for life insurers is healthy at 14% and non-life insurers at 16%. The RoE can be as high as 20% for the top five insurance companies.


Mr. Panda stated that the IRDAI's goal is to double the rate of insurance penetration over the next five years. He also stated that by 2047, when the nation will celebrate its 100th anniversary of independence, it would be possible to insure everyone.


He stated that by 2032, India would surpass the United States as the sixth largest insurance market in the world. In India, there are currently over 30 non-life insurance companies and almost two dozen life insurance companies.

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