India has increased its share in the world’s life insurance market to 1.97 percent – a rise of 0.29 percent in the last twelve months.

According to a new report, the Asian country accounted for some $47.1 billion worth of life insurance in 2007, a rise of almost $10 billion on the previous year.

Despite a recent slowdown in the uptake of new life cover policies in India, the market actually increased by 36 percent in 2006-2007, thanks mainly to the soaring strength of the rupee against the dollar. Renewal premiums have also contributed to the country’s market share increase.

In comparison, the world’s life insurance market increased in size by 12.6 percent throughout the same period – an increase of 5.4 percent when allowing for inflation (according to a Swiss Re study).

“Despite a macroeconomic environment characterised by marginally slower economic growth and rising inflation, life insurance continued to expand in 2007 with world life insurance premiums increasing by 5.4 percent to $2,393 billion,” said Daniel Staib of Swiss Re.