Choose the correct statement s Insurance penetration is defined as the ratio of premium underwr...........

Economic and Social Issues Growth and development

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Choose the correct statement(s):

Insurance penetration is defined as the ratio of premium underwritten in a given year to the gross domestic product (GDP).
Insurance density is defined as the ratio of premium underwritten in a given year to the total population
Both Insurance penetration and Density have increased in India over past 10 years.

All are correct

1 and 2 only

1 and 3 only

2 and 3 only

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Explanation:

Insurance, an integral part of the financial sector, plays a significant role in India’s economy. The performance of the insurance sector is assessed on the basis of two parameters, viz., Insurance Penetration and Insurance Density.
o The Insurance penetration in India which was 2.71 per cent in 2001, increased to 3.49 per cent in 2016 (Life 2.72 per cent and General 0.77 per cent).

o The insurance density in India, which was US$ 11.5 in 2001, has increased to US$ 59.7 in 2016 (Life 46.5 and General 13.2).

o Globally insurance penetration and density were 3.47 per cent and US$ 353 for the life segment in 2016 and 2.81 per cent and US$ 285.3 for the non-life segment respectively.