India's Insurance Market: Rapid Growth and Emerging Risks

India's insurance market is set to be the fastest-growing in the G20, driven by a robust 7.3% annual growth in premium volumes. Life insurance dominates the sector with a 74% share, while non-life segments like health and motor see expansion due to regulatory support. Economic progress, however, heightens risk from natural disasters.

India is positioning itself as the G20's fastest-growing insurance market, with a projected annual growth of 7.3% in total premium volumes over the next five years. This surge is attributed to macroeconomic stability and a supportive regulatory framework, according to a report released Tuesday.

The Swiss Re report highlights life insurance, accounting for 74% of India's premium volumes, with expected growth of 4.8% in 2024 and 5% in 2025. The non-life insurance sector, covering health, motor, and agriculture, is set to escalate by 7.3%, boosted by rising risk awareness and digitalisation initiatives.

Although India's economy is set to outpace Germany and Japan, growing into the world's third-largest by 2030, this rapid expansion also brings increasing vulnerabilities to natural catastrophes, as highlighted by a USD 12 billion loss in 2023 from such events.

(With inputs from agencies.)