India’s insurance industry sees 32% to 34% annual growth

Over the past nine years, the industry has attracted nearly $6.5b in FDIs.

India’s insurance industry continues to show strong growth momentum, supported by rising incomes, greater consumer awareness, and regulatory support, said the India Brand Equity Foundation. 

The country is currently the fifth-largest life insurance market amongst emerging economies, with annual growth rates between 32% and 34%.

Increased competition has pushed insurers to introduce new products, whilst regulatory reforms have further opened the sector to investment. 

Over the past nine years, the industry has attracted nearly $6.5b in foreign direct investment, following progressive relaxation of capital flow regulations by the government.

India has 57 insurers, including 24 life insurers and 33 non-life insurers. Life Insurance Corporation (LIC) remains the only public sector player in life insurance, whilst six public insurers operate in the non-life segment. 

General Insurance Corporation of India (GIC Re) is the sole national reinsurer.

The sector also includes agents, brokers, surveyors, and third-party administrators who support health insurance claims. 

Whilst traditional distribution channels like corporate agents and banks have dominated in the past, digitisation and regulatory support are enabling consumers to access products online.

The Insurance Regulatory and Development Authority of India (IRDAI) continues to implement reforms aimed at improving market access and expanding insurance penetration.

With its stated goal of "Insurance for all by 2047," IRDAI is promoting growth through regulatory changes, digital transformation, and new product offerings.