Insurance Indicators: Density and Penetration

CMAT 2023 · General Knowledge · Medium · General Knowledge

Given below are two statements:

Statement I: The performance and potential of insurance sector is assessed using insurance density as an indicator. Statement II: The performance and potential of insurance sector is assessed using insurance penetration as an indicator.

In the light of the above statements, choose the most appropriate answer from the options given below.

  1. A.

    Both Statement I and Statement II are correct

  2. B.

    Both Statement I and Statement II are incorrect

  3. C.

    Statement I is correct but Statement II is incorrect

  4. D.

    Statement I is incorrect but Statement II is correct

Answer

A

Explanation

Both Insurance Density (ratio of premium to total population) and Insurance Penetration (ratio of premium to GDP) are standard metrics used to assess the performance and potential of the insurance sector.

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