As per research by Swiss Re, in the coming 5 years, India is forecasted to have the fastest-growing insurance sector of all G20 countries. The Indian economy grew at an estimated 6.7% growth in 2023 outpacing all other major economies supported by private consumption and fixed investment.
The insurance market in India is estimated to have a positive outlook on the basis of economic growth, an expanding middle class, innovation, and regulatory support. Over the next 5 years (2024‒28), it is forecasted that total insurance premiums will grow by 7.1% in real terms, way ahead of the global (2.4%), emerging (5.1%) and advanced (1.7%) market averages. Propelling India to be the fastest-growing insurance sector of the G20 countries.
Supported by rising demand for term life cover by the middle-class and the young population of India, and with rising adoption of Insurtech, the life business will experience robust growth (premiums up 6.7% in 2024‒28).
Driven by economic growth, improvement in distribution channels, government support, and a favourable regulatory environment, the Non-life premiums are forecasted to rise by an annual average of 8.3% during 2024‒28.