India insurance penetration remains at 3.7% of GDP, McKinsey says
In short
India’s insurance penetration is 3.7% of GDP, which is below the global average, according to a McKinsey-linked report. It also says life insurance premiums have grown while the number of individual policies sold has fallen in recent years.
IRDAI is looking at changes to make insurance cheaper and more transparent. The report does not say what those changes will be or when they may happen.
What the reporting says
India’s insurance penetration stands at 3.7% of GDP, below the global average, according to a publisher-supplied summary citing McKinsey. The reporting says life insurance premiums have grown even as individual policy sales have declined in recent years, and that IRDAI is examining changes to improve affordability and transparency in distribution costs. The immediate issue is slow growth, but the exact regulatory changes and their timing are not stated.
Why it matters
India’s insurance market is described as having penetration of 3.7% of GDP, below the global average, while life insurance premiums rose and individual policy sales fell in recent years. IRDAI is reviewing changes to improve affordability and transparency in distribution costs. The issue matters for insurers, distributors and consumers, but the source says the main constraints are product relevance and trust rather than access, without naming specific policy measures.