India’s life insurance market to reach $170b by 2029

It also seen to record $121b gross written premiums this year.

India’s life insurance market is projected to grow from $110.2b in 2024 to $170.0b by 2029, posting a compound annual growth rate of 9.6% in gross written premiums (GWP), according to GlobalData.

GWP is expected to reach $120.5b in 2025, growing 9.9% year-on-year.

Growth is being driven by increasing financial literacy, digital adoption, and rising demand for term and whole life products, especially amongst younger consumers.

Women and underserved communities are also contributing to growth, aided by targeted products and initiatives like the government-backed Bima Sakhi Yojana. 

India’s growing working-age population, rising income levels, and higher female workforce participation are further supporting demand for long-term savings and protection products.

With life insurance penetration at 3.8%, well below markets like Hong Kong (15.4%) and South Korea (7.1%), India remains underinsured. 

New products like Bima Vistaar, launched in April 2025, aim to close this gap by offering low-cost protection for rural populations.

Regulatory support is expected to accelerate growth. 

The proposed increase in FDI limits from 74% to 100%, and a possible GST cut on life and health insurance from 18% to 12%, could improve affordability and investor interest. 

The Insurance Regulatory and Development Authority of India’s (IRDAI) push for universal coverage by 2047—including digital platforms like Bima Sugam—is expected to streamline access and boost engagement.

GlobalData's Senior Insurance analyst Swarup Kumar Sahoo said collaborations with microfinance institutions and postal services will expand rural coverage and support premium growth.