, India
488 views
Stock photo. Credits to Unsplash.

Why India will become the 6th biggest insurance market by 2032

Total insurance premiums is growing by 14% annually.

India will be the sixth biggest market for insurance in the world by 2032, with its total insurance premiums growing by 14% annually in nominal local currency terms over the next decade, a report by Swiss Re said.

India is the 10th biggest insurance market in the world in 2021 worth $130b growing to $420b by 2032.

In 2021, India saw its new business sums assured increase by 17.5% in nominal USD terms from a year before. The growth was boosted by increased risk awareness, the financialisation of savings, and new product launches.

Swiss Re predicts that life insurance premiums will grow by 9% annually (in real terms) by 2032, making India the fifth-largest life market globally. Meanwhile, non-life insurance premiums will continue to grow in 2022 and 2023, but at a slower pace due to the Russia-Ukraine war and high inflation. 

“Health is the largest line of business in the non-life sector, followed by motor and agriculture. Health premiums grew by 22.5% in 2021, mainly due to a pandemic-related push in demand. We estimate motor premiums will grow by 2.9% in real terms in 2022, mainly due to a rebound in economic activity and higher mobility post-pandemic,” Swiss Re said.

The growth of the insurance industry is also being helped by a series of regulatory developments aimed to improve insurance penetration, increase capital inflow, improve valuation, and facilitate the entry of small, specialised and niche players.

“The regulator is pushing for reforms to develop India as a reinsurance hub. The government has raised the limit on foreign direct investment in the insurance sector to 74% from 49%, and the insurance regulator is planning to introduce risk-based capital (RBC) requirements. The regulator has also suggested amendments to the existing regulatory sandbox that could foster further innovation in the sector,” Swiss Re said.
 

Follow the link for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Why embedded insurance is a must-have
An estimated 16% of Asian insurers’ revenues are now derived from embedded insurance.
To lead and to lag: APAC insurance’s conflicted AI journey in 2024
Whilst AI investments reached 23.93% of the total market, 41% of firms in Asia Pacific cling to outdated tech, hindering efficiency and scalability.
Insurance rides high on surge in Hong Kong travellers
CEO Jim Qin of Zurich Insurance cites a trend for extended vacations among Hongkongers in 2023, boosting travel insurance sales.