General insurance penetration reached 1 percent of GDP in FY24, showing a steady climb from 0.9 percent in FY20. Meanwhile, insurance density (premium per capita) has increased by about 32 percent, moving from $19 to $25 in the same period. While the sector has grown in absolute terms, India’s general insurance penetration is significantly trailing the 4.2 percent global average and 8.9 percent North American benchmark, ICRA data shows. Despite a minor recovery to 2.2 percent in FY24 from the FY23 dip, insurance remains a tiny fraction of the Indian savings pie. While density (premium per person) for life insurance remains at an all-time high of $70, penetration has fallen for the second consecutive year to 2.8 percent. As overall household health insurance coverage increased from 28.7 percent in NFHS-4 to 41 percent in NFHS-5, the lowest wealth index saw the highest percentage point increase (14.5 points) compared to any other group. Moreover, the gap between the richest and poorest households has narrowed from a 9 percentage point difference to just 4.7 points in same period. India’s sum assured at 24 percent of GDP drastically trails global leaders like Singapore, highlighting a massive national protection gap. Indian households are severely under-protected against mortality and health risks.