Annual report of the insurance sector

News:The annual report of the Insurance Regulatory and Development Authority of India (IRDAI) for 2018-19 has been released.

Facts:

Key terminologies:

• Insurance density is measured as the ratio of premium (in US dollars) to the total population.
• Insurance penetration is measured as the ratio of premium (in US$) to GDP(in US$).
• Insurance density and insurance penetration indicate the level of development of the insurance sector.

Highlights of the report:

• The insurance density of the life insurance sector in 2018 was $55, unchanged from the life insurance density of the previous year.
• Life insurance penetration for 2018 was 2.74% slightly lower than the 2.76% of 2017. 
• Life insurance penetration increased from 2.15% in 2001 to 4.60% in 2009 and has thereafter showed a generally decreasing trend.
• The insurance density of the non-life insurance sector has risen from $2.4 in 2001 to $18 in 2017 and to $19 in 2018.

Additional information:

About IRDAI:

• The Insurance Regulatory and Development Authority of India(IRDAI) is an autonomous,statutory body created by IRDA Act,1999.
• It was created based on the recommendations of the Malhotra Committee.It is headquartered in Hyderabad.
• The functions of IRDA includes (a)regulating the insurance industry and protects the customers (b)promotion of competition to enhance customer satisfaction and (c)lowering premiums for ensuring the financial security of the insurance sector.