While general insurance in India has seen an 18% CAGR during 2005-14, when compared with global benchmark, its reach is still very low. For instance, home insurance penetration is less than 1% vis-a-vis global benchmark of 95%. Personal health insurance, two-wheelers, SME and rural risk coverage are also substantially lower. India has the highest combined ratio across countries because of a higher claims ratio. As a result, the industry has delivered poor returns to shareholders.
Source: Irdai, Morgan Stanley
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