India’s life insurance sector is projected to experience an annual growth rate of 6.9% from 2025 to 2029, making it the fastest-growing market in the G20, according to Swiss Re’s latest report. This growth is part of a broader trend that will see total premium volumes for both life and non-life insurance in India increase by an average of 7.3% annually in real terms over the next few years.
The report predicts that India’s economy will surpass Germany and Japan, becoming the world’s third-largest economy by 2030. Swiss Re attributes this growth to robust domestic consumption, private investment, and ongoing economic reforms. The global economic environment, with growth expected at 2.8% in 2025 and 2.7% in 2026, will further support India’s expansion.
Mahesh H. Puttaiah, Head of Insurance Market Analysis at Swiss Re, highlighted the importance of identifying and assessing risks, particularly in areas prone to natural disasters. He noted, “The rapid pace of India’s economic growth has outpaced efforts to reduce the vulnerabilities posed by natural catastrophes, making accurate risk assessment crucial for resilience in the re/insurance industry.”
The life insurance sector, which accounts for 74% of India’s total premiums, is expected to grow 4.8% in real terms in 2024, followed by 5% growth in 2025. From 2025 to 2029, life insurance premiums are forecasted to grow by 6.9% annually. This follows a modest 0.7% growth in 2023, influenced by regulatory and taxation changes in the savings segment.
Non-life insurance is also set for strong growth, with a 7.3% increase in 2025, up from 5.7% in 2024. Increased awareness of risk and continued economic expansion are expected to drive this growth. The health and motor insurance sectors remain the largest non-life insurance segments, while agricultural insurance is gaining traction due to adjustments in the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme.
However, India’s rapid economic growth also comes with rising risks, particularly in industrial hubs like Gujarat, Maharashtra, Tamil Nadu, and Delhi. These regions, home to critical infrastructure such as logistics networks and renewable energy installations, are increasingly vulnerable to natural disasters.
Related topics:
