1. Introduction
India’s insurance sector is vast and potential. During the financial year 2023-24 total insurance premium collected were Rs. 11,19,613/- crore. It includes Rs. 8,29,929/- crore from Life Insurance sector, Rs. 1,72,978/- crore from General Insurance sector and Rs. 1,16,694/- crore from Health Insurance sector. Women comprise nearly 49% of the total population in India. Their contribution to the Gross Domestic Product (GDP) of the country is significant and is increasing every year. Insurance sector plays a pivotal role in the GDP of the country. As per Swiss Re Sigma World Insurance Report, the insurance penetration of life insurance sector in India is reduced from 3 percent in 2022-23 to 2.7 percent during 2023-24. The penetration with respect to Non-life insurance industry remained same at 1 per cent during 2023-24 as in 2022-23. This article explores there are several issues concerning gender discrimination in the insurance sector in India hence it results low insurance density and low insurance penetration in India as compared to globe.
2. Insurance Penetration and Insurance Density – India Vs World
Insurance penetration and insurance density are two significant metrics applied in the insurance sector to evaluate the stage of development of insurance sector in the country. Insurance penetration is measured as the percentage of collected insurance premiums to Gross Domestic Product. Insurance density is calculated as the ratio of collected insurance premium to total population i.e. per capita premium.
Table: 1 Insurance Penetration and Insurance Density in 2023-2024
| Regions | Insurance Penetration (%) | Insurance Density (USD) | ||||
| Life Insurance | Non-Life Insurance | Total | Life Insurance | Non-Life Insurance | Total | |
| India | 2.7 | 1.0 | 3.7 | 70 | 25 | 95 |
| World | 2.9 | 4.1 | 7.0 | 361 | 528 | 889 |
Source: Swiss Re Sigma World Insurance Report (No. 03/2024)
As per Swiss Re Sigma World Insurance Report, globally insurance penetration was 2.9% for the life insurance sector and 4.1% for the non-life insurance sector. Overall, insurance penetration was 7.0% in 2024. In 2023-24, India’s insurance penetration (both life insurance and non-life insurance) was only 3.7% as compared to 4% in 2022-23.
It is seen from the above table that globally insurance density was 361 USD for the life insurance sector, 528 USD for the non-life insurance sector and overall insurance density was 889 USD in 2024. But India’s position is far below than the world position. It was 70 USD for the life insurance sector, 25 USD for the non-life insurance sector and overall insurance density was only 95 USD in 2024.
3. Insurance Agents in Insurance Sector
The growth of life insurance sector mainly depends on number of policies issued by life insurance companies and role of insurance agents. In case of life insurance sector, number of agents increased from 26.28 lakhs in 31.03.2023 to 28.95 lakhs in 31.03.2024.
Table: 2 Insurance Agents Associated with Life, General and Health Insurers
| Insurer | As on 31.03.2023 | As on 31.03.2024 |
| Public Sector Life Insurer | 13,47,325 | 14,14,743 |
| Private Sector Life Insurers | 12,80,883 | 14,80,695 |
| Life Insurance Industry Total | 26,28,208 | 28,95,438 |
| Public Sector General Insurers | 3,09,048 | 3,18,096 |
| Private Sector General Insurers | 4,17,745 | 3,81,054 |
| General Insurance Industry Total | 7,27,493 | 6,99,150 |
| Stand-alone Health Insurers | 11,58,294 | 13,05,569 |
| Industry Total | 45,13,995 | 49,00,157 |
Source: IRDA Annual Report, 2024
In case of non-life insurance sector, number of agents decreased from 7.27 lakhs in 31.03.2023 to 6.99 lakhs in 31.03.2024. Although total number of agents in insurance sector increased from 45.13 lakhs in 31.03.2023 to 49 lakhs in 31.03.2024 but gender discrimination results adverse impact on insurance sector.
4. Gender-wise Distribution of Insurance Agents
The agents play a pivotal role for the growth of life insurance industry. But the situation is not appropriate regarding the division of male agents and female agents. During the year 2023-24 there were total of 49 lakhs insurance agents in insurance sector. Out of 49 lakhs insurance agents, male individual agents were 34.87 lakhs i.e. 71.18% and female individual agents were 14.12 lakhs i.e. 28.82%.
Table: 3 Gender-wise Distributions of Insurance Agents Associated with Life, General and Health Insurers
| Insurer | Male | Female | Others | Total |
| Public Sector Life Insurer | 10,55,671
(74.62%) |
3,59,072
(25.38%) |
0
(0.00%) |
14,14,743
(100%) |
| Private Sector Life Insurers | 9,67,277
(65.33%0 |
5,13,417
(34.67%) |
1
(0.00%) |
14,80,695
(100%) |
| Life Insurance Industry Total | 20,22,948
(69.87%) |
8,72,489
(30.13%) |
1
(0.00%) |
28,95,438
(100%) |
| Public Sector General Insurers | 2,57,907
(81%) |
60,189
(19%) |
0
(0.00%) |
3,18,096
(100%) |
| Private Sector General Insurers | 2,75,571
(72%) |
1,05,483
(28%) |
0
(0.00%)
|
3,81,054
(100%) |
| General Insurance Industry Total | 5,33,478
(76.30%) |
1,65,672
(26.70%) |
0
(0.00%) |
6,99,150
(100%) |
| Stand-alone Health Insurers | 9,31,564
(71%) |
3,74,005
(29%) |
0
(0.00%) |
13,05,569
(100%) |
| Industry Total | 34,87,990
(71.18%) |
14,12,166
(28.82%) |
1
(0.00%) |
49,00,157
(100%) |
Source: IRDA Annual Report, 2024
Out of the total 28.95 lakhs individual agents of Life Insurance Industry, male individual agents were 20.22 lakhs i.e. 69.87% and female individual agents were 8.72 lakhs i.e. 30.13%. In public life insurance sector, out of 14.14 lakhs individual agents, 10.55 lakhs i.e. 74.62% were male individual agents and only 3.59 lakhs i.e. 25.38% were female individual agents. In private life insurance sector, out of 14.80 lakhs individual agents, 9.67 lakhs i.e. 65.33% were male individual agents and only 5.13 lakhs i.e. 34.67% were female individual agents.
In General Insurance Industry, out of the total 6.99 lakhs individual agents male individual agents were 5.33 lakhs i.e. 76.30% and female individual agents were 1.66 lakhs i.e. 26.70%. In public general insurance sector, out of 3.18 lakhs individual agents, 2.57 lakhs i.e. 81% were male individual agents and only 60 thousand i.e. 19% were female individual agents. In private general insurance sector, out of 3.81 lakhs individual agents, 2.75 lakhs i.e. 72% were male individual agents and only 1.05 lakhs i.e. 28% were female individual agents.
5. Proportion of Policies on women in Life Insurance sector
During 2022-23, the life insurance sector registered a declining trend in growth of (-) 2.77% in the number of policies issued against the previous financial year 2021-22. The total number of policies issued in the year 2022-23 was around 2.84 crore of which 97.38 lakhs policies issued to female policy holders which is 34.20%. But the ratio is different in public sector and private sector. In case of public sector, 64.19% of policies issued to male policy holders and only 35.81% of policies issued to female policy holders. In case of private sector, 69.85% of policies issued to male policy holders and only 30.13% of policies issued to female policy holders. The position of bottom five States/UTs regarding female policy holder’s share are as follows:
Table: 4 Position of bottom five States/UTs regarding female policy holder’s share to total policies
| State/UT | Female policy holder’s share to total policies in the State (%) | Male policy holder’s share to total policies in the State (%) |
| Gujarat | 29.59 | 70.41 |
| Uttar Pradesh | 29.53 | 70.47 |
| Jammu& Kashmir | 28.07 | 71.93 |
| Haryana | 27.16 | 72.84 |
| Ladakh | 23.10 | 76.90 |
Source: IRDA Annual Report, 2023
Out of total 28 States and 6 Union Territories (UT), only in 15 States/UTs the share of number of policies purchased by female policy holders to the total life insurance policies issued is higher than the national average of 34.20%. No one State crossed the 50% share towards the policies issued to women. Karnataka remains at the top position towards the policies issued to women and which is 44.23%.. The shares in number of policies bought by women to the total policies were only 29.59% in Gujarat, 29.53% in Uttar Pradesh and 27.16% in Haryana. In Ladakh, only 23.10% of policies issued to female policy holders.
6. Conclusion
The public sector life insurance company and the private sector life insurance offices together have covered nearly 90% of all districts in the country. Out of 36 States/UTs, in 20 States/UTs all the districts were covered through the life insurance offices. In 80 districts in our country there are no life insurance offices. At least one life insurance office and one non-life insurance office is to be set up in every district for the benefit of women sector. Indian insurance market is ready for expansion and potential for growth is tremendous. Success depends on the ability, attitude and efficiency of the officials of insurance industry. More attention is to be given to recruit large number of female insurance agents. Steps to be taken to reduce the gap between number of policies issued to male policy holders and number of policies issued to female policy holders. As the insurance density and insurance penetration in India is very low than the globe so both private insurance companies and public insurance companies operating in India have to take necessary steps to reduce gender discrimination in the insurance sector for enhancing insurance density and insurance penetration and hence India may reach at the global standard.
Authored by:
Dr. Jaydeb Bera
Associate Professor, Department of Commerce
Pingla Thana Mahavidyalaya
