An Analysis of Life Insurance Penetration across Prominent Developed & Developing Economies of the World

Insurance is a financial arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Insurance penetration is defined as the ratio of premium underwritten in a given year to gross domestic product (GDP). Penetration rate indicates the level of development of insurance sector in a country. Hence this research paper focuses on insurance penetration across prominent developed & developing economies of the world. Developed economies are the post industrial economies service sector provides more wealth than industries. Developing economies are normally agrarian economies with the process of industrialization. In this research paper researcher used the secondary data for analysis as provided by IRDA annual report. Statistical techniques like measures of central tendency, measures of dispersion, ANOVA & regression test has been used for meaning full analysis. Insurance penetration rate is not poor among all the developing countries selected for the study which is less in only few countries like Brazil, Russia, Bangladesh, Pakistan & Srilanka. The researcher has made an attempt suggest how the developing countries can adopt the measures to improve the penetration rate.