Insurance penetration is the ratio of direct gross premiums to gross domestic product (GDP).
Gross premiums are total premiums written, excluding any premium taxes or other charges, but before deduction of commission or reinsurance outwards. The inclusion of reinsurance assumes some double counting.
Gross premiums are the sum of premiums of direct business and premiums of reinsurance accepted.
This ratio can be used to indicate the relative importance of the insurance industry in the domestic economy.
This indicator is expressed as a percentage of GDP.