The premium income of India's life insurance market is set to double by 2012 on better penetration and higher incomes, consultancy firm McKinsey & Co said in a report. The total premium could go up to $80-100 billion by 2012 from the present $40 billion as higher per capita income increases per capita insurance intensity, the report released on Monday said. The average household premium will rise to Rs 3,000-4,100 from the current Rs 1,300 as will penetration by the existing and new players, McKinsey said. India's ratio of life insurance premium to its GDP is around 4 per cent against 6-9 per cent in the developed world. But, the report said, it could rise to 5.1-6.2 by 2012 in tandem with the country's demographic profile. That Indians rank life insurance higher than other investment options for tax benefits and protection will also help, it noted. India has 17 life insurers and the state-owned Life Insurance Corp of India dominates the industry with over 70 per
Life Insurance in India