Our Terms & Conditions | Our Privacy Policy
India’s booming economy is fuelling rapid growth in its insurance market, predicted to be the G20’s fastest-growing over the next five years, according to Swiss Re.
This surge is driven by domestic consumption, private investment, and economic reforms, positioning India to become the world’s third-largest economy by 2030, surpassing Germany and Japan.
The economy will also derive support from steady global growth, forecast at 2.8% in 2025 and 2.7% in 2026, analysts noted.
Total premium volumes (life and non-life) are expected to increase by an average of 7.3% annually in real terms on average each year.
According to Swiss Re, this growth is underpinned by strong macroeconomic tailwinds, rapid digitalization, and a supportive regulatory environment.
Life insurance remains the dominant force in India’s insurance landscape, representing 74% of total premium volumes.
After a modest 0.7% growth in 2023, impacted by regulatory and taxation changes, life premiums are projected to grow with a 4.8% increase in 2024 and 5% in 2025, accelerating to 6.9% annually between 2025 and 2029.
The non-life insurance sector is also experiencing growth, forecasted to expand by 7.3% in 2025, up from 5.7% in 2024.
According to Swiss Re, this surge is driven by increasing risk awareness, strong economic growth, and government initiatives promoting digitalization.
Health and motor insurance continue to be the largest lines of non-life business, and agricultural insurance penetration has improved thanks to recent modifications to the 2023 Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme.
However, India’s rapid economic expansion is also creating new risk hotspots, Swiss Re analysts warn, particularly in industrial and infrastructure hubs in Gujarat, Maharashtra, Tamil Nadu, and Delhi.
These areas, industrial clusters, logistics infrastructure, renewable energy and other assets, are increasingly vulnerable to natural catastrophes such as floods and earthquakes.
In 2023, India suffered USD 12 billion in economic losses from natural disasters, significantly exceeding the previous 10-year average of USD 8 billion.
These varied factors – a booming economy, increasing risk awareness, and evolving risk profiles – present both challenges and opportunities for the Indian insurance industry.
Mahesh H Puttaiah, Head Insurance Market Analysis, Swiss Re, commented: “The rapid pace of India’s economic growth has moved faster than actions taken to reduce the vulnerabilities posed by natural catastrophes. Identification and accurate assessment of risk accumulation in hotspots is crucial to strengthening resilience and the re/insurance industry plays an important role.
“Alongside economic development, India has made progress in its transition to net-zero by 2070, with increased focus on renewables, low-carbon transport and industrial decarbonisation.”
He concluded: “Facilitating the transition requires investment into adaptation and mitigation measures, for example, sustainable infrastructure and related technologies. Re/insurers can improve the viability of large transition projects by providing tailored risk solutions, which leverage their extensive experience and risk engineering and underwriting data.”
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.