India’s life insurance sector bound for 6.9% annual growth: Swiss Re

Total premium volumes predicted to increase by an average of 7.3%.

India’s insurance market is set to lead the G20 in growth, with total premium volumes for life and non-life insurance predicted to increase by an average of 7.3% annually in real terms through 2029, according to Swiss Re.

Swiss Re has released its latest report on India's insurance market outlook, which predicts India's trajectory to surpass Germany and Japan, becoming the world’s third-largest economy by 2030. 

“The rapid pace of India’s economic growth has moved faster than actions taken to reduce the vulnerabilities posed by natural catastrophes. Identification and accurate assessment of risk accumulation in hotspots is crucial to strengthening resilience and the re/insurance industry plays an important role,” Mahesh H Puttaiah, head of Insurance Market Analysis at Swiss Re, said in a media advisory.

This growth is attributed to strong domestic consumption, private investment, and ongoing economic reforms. Global economic growth, estimated at 2.8% in 2025 and 2.7% in 2026, is expected to provide additional support.  

This expansion is fueled by macroeconomic momentum, digital advancements, and a favourable regulatory environment.  

Life insurance, comprising 74% of the country’s total premiums, is projected to grow 4.8% in real terms in 2024, rising to 5% in 2025 and averaging 6.9% annually from 2025 to 2029. 

This follows modest growth of 0.7% in 2023, which was impacted by regulatory and taxation changes affecting the savings segment.  

Non-life insurance is expected to grow by 7.3% in 2025, up from 5.7% in 2024, supported by increased risk awareness and economic expansion. 

Health and motor insurance remain the largest non-life sectors, with agricultural insurance also gaining traction due to adjustments in the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme in 2023.  

India’s rapid economic growth is also intensifying risks in industrial hubs, particularly in Gujarat, Maharashtra, Tamil Nadu, and Delhi, where assets such as logistics infrastructure and renewable energy installations are vulnerable to natural disasters. 

In 2023, natural catastrophes in India caused economic losses of $12b, significantly exceeding the 10-year average of $8b.  

“Alongside economic development, India has made progress in its transition to net-zero by 2070, with increased focus on renewables, low-carbon transport and industrial decarbonisation,” added Puttaiah.