Banking - Yojana

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operated, feature highly
concentrated markets since they
serve consumer's interest with
minimum risk.
Table 5 gives a clear picture of
the market share of various
countries with respect to life
Table 4
Life Insurance Density and Life Insurance Penetration in 1995
Source: SIGMA, Swiss Re,4/92
Note: Life Insurance Density-Premium in US $ per capita
Life Insurance penetration-premium income as a percentage of GDP.
Source: Insurance Research Letter; Nov. 1995 SIGMA [bid.
insurance business as well. japan
again leads in greatest market
share (91.5 per cent) in life (88.7)
and in non-life insurance market.
Though US is a comparatively
large country than japan and
Australia, its market share is lower
than those small countries. Life
Life Insurance Life Insurance Density
Country Penetration (percent) (US$)
Developed Counties
South Korea 523.36 9.'45
Japan 2252.49 6.42
Great Britain 1775.15 6.24
Australia 1269.50 3.93
US 1928.66 3.79
Developing Countries
Zimbabwe 20.84 3.34
Chile 33.80 1.77
Malaysia 32.68 1.37
Philippines 7.38 1.19
India 5.60 1.11
Pakistan 1.53 0.44
China 0.53 0.18
Countries
Table 5
Degree of Concentration in Insurance Market
Market Share (percent)
Non
Life Life Total
US 41.4 47.0
Great Britain 62.6 76.6
Japan 91.5 88.7
Australia 84.4 87.0
Mexico 50.0
Chile 70.6
Market:
Share by Total
No. of Companies in
companies the market
15 3500
15 800
15 25
15
6
8
insurance market share in US was
41.4 per cent but in Australia, it was
84.4 per cent. Similarly the non-life
insurance market share is less in
US being 47 per cent as against 87
per cent in Australia.
The foreign licensed insurers
business in the domestic markets
of the US and japan is three
percent and in European countries
like Great Britain, France and
Switzerland five percent. The
degree of internationalisation of •
Great Britain was found to be 56
percent, but for the US and japan
it is three percent. This brings out
the significant point that the US
which is pressurising for opening
of insurance intensity in India
neither has dominant share in the
global portfolio, nor do foreign
insurers have any major role in its
domestic market.
Growth in Pondicherry
Region
There has been significant
growth in the life insurance sector
in Pondicherry region during the
period 1960 to 2000. In coping
with the increased demand for
insurance, life insurance sector has
tried to increase the supply of it in
order to cover the maximum
number of people by increasing
the number of agents which would
increase the efficiency of the
sector. Table 6 shows the growth in
the sector with respect to number
of proposals, the sum proposed,.
number of policies, the sum
assured, number of development
officers, and active agents.
The data during the period
1960 to 2000 shows that there has
been a gradual increase in the
number of proposals during the
period. In 1~80, there had been an
increase above Rs. 5000, but it fell
below Rs. 5000 iQ the next five
(Contd. on page 22)
12 YOJANAJuly 2002
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