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The extent of insurance use in an economy or population, often measured relative to economic activity.
The numerator records premiums under a stated scope, such as life, non-life or total insurance. GDP provides the economic-size denominator for the same period. Premium growth, insurance prices and changes in GDP can all move the ratio. Comparisons need consistent definitions because written versus earned premiums, direct business versus reinsurance and different sector coverage can produce different numbers.
Imagine an economy with annual GDP of J$3 trillion and qualifying direct gross premiums of J$90 billion. Penetration is 90 ÷ 3,000 = 3%. That figure does not imply 3% of residents are insured. If premiums rise to J$99 billion while GDP remains unchanged, the ratio becomes 3.3%, even if the number of policyholders does not change.
Jamaican insurers report J$54.35 billion in Melissa payments; 983 claims remain