India insurance market to rank sixth globally

The government is also moving towards allowing 100% foreign ownership in insurance.

India’s insurance market is expected to become the world’s sixth-largest within the next decade, overtaking Germany, Canada, Italy, and South Korea, according to government forecasts, as reported by Gallagher Re’s Asia Pacific Market Watch.

The country has 28 non-life insurers and seven standalone health insurers, with the non-life sector still led by five state-owned players, although private companies such as ICICI Lombard, Bajaj Allianz, and Tata AIG are also major players.

About half of reinsurance business is written by state-owned GIC Re, with the rest shared mainly amongst 13 foreign reinsurance branches, including Lloyd’s. 

In April 2025, regulators approved the country’s first domestic private reinsurer, Valueattics Re. 

The government is also moving towards allowing 100% foreign ownership in insurance, following the current 74% limit. 

Earlier last year, Allianz said it would exit its joint venture with Bajaj Insurance and instead form new ventures with Reliance Industries’ Jio.

Non-life gross written premium grew 6.2% in the year to March 2025 to $35.9b, slowing from 12.8% a year earlier. 

Health insurance remained the largest segment with a 38.6% share, followed by motor at 32.2%, but both saw slower growth due to rising costs, weaker vehicle sales, and price competition.

Persistent underwriting losses have kept the industry’s combined ratio above 100%, whilst insurance penetration remains low at 3.4% of GDP, pointing to long-term growth potential.