India may rank low in terms of overall financial development globally,
but it is the world's top-ranked country in terms of life insurance
density, the World Economic Forum (WEF) has said in its latest report.
Life insurance density is measured in terms of ratio of direct
domestic premiums for life insurance to per capita GDP of a country.
As per WEF's Financial Development Report 2012, India has been
ranked 40th in terms of overall financial development of a country, but
it is placed better than many larger economies like the US, UK, Japan
and China for life insurance density.
India is followed by China, Japan, US and UK in the top-five countries for life insurance density, WEF said.
In terms of non-life insurance density, India is ranked third
after China and the US at top-two positions, but is ahead of countries
like Germany, France, Japan and the UK.
WEF said its report measures the financial development of 62
countries across various segments of their financial systems and capital
markets.
The overall rankings are based on more than 120 variables
spanning banking financial services, financial stability and non-banking
financial services among other factors.
"Recent empirical research has found a strong positive
relationship between insurance sector development and economic growth;
this relationship holds quite strongly even in developing countries,"
WEF said in its report.
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