The general insurance market in India is set to experience substantial growth, with a projected gross written premium (GWP) of INR 4.89 trillion (US$57.3 billion) by 2028, marking a significant increase from INR 3.35 trillion ($40.36 billion) in 2024.
According to a report by GlobalData, a data and analytics firm, this forecast reflects a compound annual growth rate (CAGR) of 9.9%.
Key Drivers of Indian General Insurance Growth
Projections for 2024 suggest an 11.2% expansion in the sector, driven primarily by key insurance lines such as personal accident and health (PA&H), motor, and property, which collectively constituted 93% of all general insurance premiums in 2023.
Swetansha Chauhan, an insurance analyst at GlobalData, noted, “The general insurance industry in India continued its high growth trend and grew by 13.2% in 2023, driven by economic growth and rising disposable income. Rising consumer awareness of health and other general insurance products and robust regulatory reforms also supported India’s general insurance industry growth. The trend is expected to continue in 2024 and 2025.”
PA&H Insurance Market Growth
In 2024, PA&H insurance is poised to dominate the industry, projected to account for 39.5% of the GWP. This sector is forecasted to grow at 14.5% in the same year, driven by increased health consciousness following the COVID-19 pandemic and rising medical costs.
Over the period from 2024 to 2028, the CAGR for PA&H insurance is expected to reach 12.5%. An important factor contributing to this growth is the proposed introduction of a healthcare regulator in December 2023, aimed at enhancing the standardization and regulation of hospitals within health insurance systems.
Additionally, the introduction of “Bima Sugam,” an insurance electronic marketplace approved by the Insurance Regulatory and Development Authority of India (IRDAI) and launched in March 2024, is expected to streamline insurance policy transactions, claims processing, and grievance handling, promoting efficiency and transparency in the insurance landscape.
Motor Insurance Growth
Motor insurance represents the second-largest category, with an estimated 31.1% share of the GWP in 2024 and anticipated growth of 10.4%. This growth is linked to increased vehicle sales, which surged by 12.5% in March 2024 compared to the previous year, according to the Society of Indian Automobile Manufacturers (SIAM).
The sector is projected to achieve a CAGR of 7.9% over the next four years, partially driven by the new vehicle scrapping policy mandating the scrapping of private vehicles older than 20 years and commercial vehicles over 15 years old.
Property Insurance Growth
Property insurance is expected to represent 22.5% of the GWP in 2024, with an anticipated annual growth of 10.4%. This segment is bolstered by an 11.1% year-on-year increase in governmental infrastructure spending, amounting to $134 billion for the fiscal year 2024-2025.
Chauhan emphasized, “Recovery in the economy and rising disposable income will continue to support the growth of India’s general insurance industry during the next five years. Initiatives from the government and favorable regulatory reforms will help increase the insurance penetration rate in India (0.98%), which was lower compared to other Asian markets such as Japan (1.75%), South Korea (1.46%), Hong Kong (1.65%), and China (1.26%) in 2023.”
