ALM Strategy and Insurance Market Opportunities
38
Life Insurance: A preferred savings instrument
Household savings composition
Financial savings mix
2%
11%
11%
12%
11%
11%
5%
9%
9%
7%
2%
15%
9%
7%
8%
19%
17%
18%
22%
22%
18%
48%
51%
52%
54%
59%
17%
18%
18%
67%
56%
48%
52%
42%
45%
49%
48%
46%
41%
FY13
FY16
FY19
FY22
FY23
■Gross financial savings
■Physical savings
FY13
■Currency & deposits
FY16
FY19
FY22
■Insurance
■ Pension
■Shares & debentures
FY23
■Small savings
Gross financial savings as % of GDP
Increasing preference towards financial savings with increasing financial literacy within the population
■
Various government initiatives to promote financial inclusion:
Implementation of JAM trinity. Deposits in PMJDY accounts nearly doubled in 4 years from INR 0.96 Tn to INR 1.95 Tn
о Nearly 90% of people in the country have a bank account, without any sharp urban-rural divide
Launch of affordable PMJJBY and PMSBY social insurance schemes
Atal Pension Yojana promoting pension in unorganized sector
Source: Motilal Oswal Financial Savings Update Sep '23, RBI Annual Report, Invest India
HDFC
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