Insurance Density definition
Insurance Density. Per capita income of consumers plays a vital role in determining the amount an average consumer spends on insurance. By this ▇▇▇▇▇▇▇, ▇▇▇▇▇ is among the lowest-spending nations in the world in respect of purchasing insurance. However, spending on insurance is on a growth trajectory in India. India’s improving economic fundamentals was a key support factor for faster growth in per capita income in recent years, which translated into stronger demand and spending for and on insurance products. From spending a mere US$ 9.1 on insurance in 2001, spending rose consistently over the next six years to touch a high of US$ 40.4. This 2007 level of spending, while higher than its neighbours (Sri Lanka US$ 10.2, Pakistan US$ 2.6 and Bangladesh US$ 1.9), continues to remain far behind most industrial nations like the US (US$ 1,922.0), UK (US$ 5,730.5), Japan (US$ 2,583.9) and South Korea (US$ 1,656.6) and just behind China (US$ 44.2). One factor that has been slowing down the improvement of insurance density is India’s relatively high population growth rate, which has averaged 1.7% over the past ten years.