India’s insurance sector is projected to lead the G20 in growth, with total premium volumes for life and non-life insurance expected to increase by an average of 7.3% annually in real terms through 2029, according to Swiss Re’s latest report.
The report highlights India’s insurance market as a key player in global growth, anticipating that the country will surpass Germany and Japan, becoming the world’s third-largest economy by 2030. The country’s robust economic expansion, combined with strong domestic consumption, private investment, and ongoing economic reforms, are key drivers of this growth.
Mahesh H. Puttaiah, head of Insurance Market Analysis at Swiss Re, emphasized that while India’s economic growth has been rapid, the pace of addressing vulnerabilities linked to natural catastrophes has not kept up. “Identification and accurate assessment of risk accumulation in hotspots is crucial to strengthening resilience, and the re/insurance industry plays an important role,” Puttaiah stated.
The report notes that global economic growth, forecast at 2.8% in 2025 and 2.7% in 2026, will further bolster India’s market expansion. Macro-economic factors, digital advancements, and a favorable regulatory environment are also contributing to the sector’s upward trajectory.
Life Insurance to Lead Growth
Life insurance, which accounts for 74% of India’s total premiums, is expected to grow by 4.8% in real terms in 2024. This growth is anticipated to rise to 5% in 2025, with an average annual growth rate of 6.9% from 2025 to 2029. This follows a modest 0.7% increase in 2023, which was impacted by regulatory and taxation changes affecting the savings segment.
Non-Life Insurance Gaining Momentum
The non-life insurance sector is predicted to grow by 7.3% in 2025, up from 5.7% in 2024, supported by increased risk awareness and overall economic expansion. Health and motor insurance remain the dominant segments, but agricultural insurance has gained attention due to recent reforms in the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme.
Rising Risks Amid Rapid Growth
India’s rapid economic growth is also intensifying risks in industrial hubs, particularly in Gujarat, Maharashtra, Tamil Nadu, and Delhi, where logistics infrastructure and renewable energy installations face vulnerabilities to natural disasters. In 2023, natural catastrophes in India caused economic losses of $12 billion, significantly surpassing the 10-year average of $8 billion.
Puttaiah also noted that alongside economic development, India has made notable progress in its transition to net-zero by 2070. Increased focus on renewable energy, low-carbon transport, and industrial decarbonization are part of this broader effort.
In summary, India’s insurance sector is set for substantial growth, driven by a combination of economic momentum, digital advancements, and regulatory support. However, the country must also address the growing risks posed by natural catastrophes to ensure long-term resilience.
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