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Treasury & Capital Markets
India to lead G20 insurance growth amid boom
Sector offers vast opportunities to scale, strengthen resilience against emerging risks
Tom King   15 Jan 2025

India is poised to become the fastest-growing insurance market among G20 economies, driven by its surging economy, increasing asset base and enhanced regulatory support, according to a new report.

India’s insurance sector stands at a pivotal juncture, with vast opportunities to scale, innovate and strengthen its resilience against emerging risks in the years ahead, finds the Swiss Re Institute report.

The nation’s economy is forecast to achieve an average real GDP growth rate of 6.9% in 2025-26, significantly outpacing the global average of 2.7%. As such, the insurer projects a robust 7.3% compound annual growth rate ( CAGR ) for India’s total insurance premiums from 2025 to 2029, making it the fastest in the G20. This figure represents a sharp increase from the 4.1% CAGR seen between 2020 and 2024.

While life insurance is expected to continue to dominate with a 74% market share, non-life insurance is projected to grow at an even faster pace due to rising risk awareness and digital innovation. Health and motor insurance, which collectively account for a significant share of non-life premiums, are expected to see stable expansion.

Natural catastrophe losses

Meanwhile, recent policy changes in agricultural insurance are likely to improve penetration in rural areas. And regulatory reforms, such as the increase in foreign direct investment limits and a simplified licensing regime, are set to further attract capital and enhance insurance access.

India, the report points out, is also undergoing a significant renewable energy evolution. Insurers, it therefore suggests, should be encouraged to play a pivotal role in the country’s green transition by offering risk management solutions to support sustainable infrastructure and industrial decarbonization efforts.

However, despite its growth potential, India still faces challenges, particularly in regions identified as “risk hotspots” due to their exposure to natural catastrophes. Areas, such as Gujarat, Maharashtra, Tamil Nadu and Delhi, that host critical infrastructure and industrial assets are vulnerable to flood and earthquake risks.

Notably, economic losses from natural disasters reached US$12 billion in 2023, exceeding the prior decade’s average of US$8 billion. The report highlights the importance of developing a strong partnership between insurers and policymakers in managing these risks.