Indian general insurance industry’s gross written premiums (GWP) is likely to witness a growth at a compound annual growth rate (CAGR) of 9.9% from INR 3.35 tn ($40.36bn) in 2024 to INR 4.89 tn ($57.3bn) in 2028, as per GlobalData.
The general insurance industry in India is likely to grow at a healthy rate of 11.2% in 2024, mainly driven by personal accident and health (PA&H), motor, and property insurance lines, all three combined holding a 93% share of the total general insurance premiums in 2023. This performance comes on the back of the 13.2% growth in 2023, continuing its upward trend in 2024 and 2025.
PA&H insurance is the largest segment, accounting for a 39.5% share of general insurance GWP and is forecasted to grow by 14.5% in 2024 on account of higher health awareness and rising medical inflation, exhibiting a CAGR of 12.5% in the 2024-28 period.
Motor insurance, the 2nd largest segment with a 31.1% share of general insurance GWP, is expected to grow at 10.4% in 2024, driven by rising vehicle sales. Motor insurance is likely to witness a CAGR of 7.9% during 2024-28.
Property insurance, the third largest line of business with a 22.5% share of general insurance GWP, is estimated to grow by 10.4% in 2024, driven by infrastructure projects. The investment trend is likely to continue with property insurance growing at a CAGR of 8.3% during 2024-28.
Liability, marine, aviation and transit, and other general insurance products combined account for the balance 6.8% share of the general insurance GWP in 2024.
As per the research report, economic recovery and increasing disposable income will push the rate of insurance penetration in India (0.98%), in comparison to Japan (1.75%), South Korea (1.46%), Hong Kong (1.65%) and China (1.26%) in 2023.