Insurance Industry Market Growth in India - Infographic

As per the Insurance Regulatory and Development Authority of India (IRDAI), India will be the sixth-largest insurance market within a decade, leapfrogging Germany, Canada, Italy and South Korea.

Advantage India

Robust
Demand

*India's insurance sector has witnessed significant growth, with the domestic market expanding at CAGR of 17% over the past two decades. It is projected to reach Rs. 19,30,290 crore (US$ 222.0 billion) by FY26. This growth has been driven by increased awareness, favorable regulatory changes, and greater participation from the private sector.

*India’s life insurance sector saw growth, with new business premiums rising to Rs. 40,206 crore (US$ 4.59 billion) in September 2025 and YTD collections growing even more from Rs. 1,89,214 crore (US$ 21.62 billion) to Rs. 2,03,668 crore (US$ 23.28 billion) this month.

Attractive
Opportunities

*Robotic Process Automation (RPA) and AI will occupy center stage in insurance, driven by newer data channels, better data processing capabilities and advancements in AI algorithms.

*Bots will become mainstream in both the front and back-office to automate policy servicing and claims management for faster and more personalized customer service.

*The rise of digital-only insurers and aggregator platforms is opening new avenues for reaching untapped customer segments, particularly millennials and rural populations. Platforms like IRDAI’s "Bima Sugam" are simplifying policy purchase and comparison

*India’s IoT insurance market is projected to reach Rs.1,83,120 crore (US$ 21.4 billion) by 2033, growing at nearly 55% annually.

Policy
Support

*The Indian government has increased the Foreign Direct Investment (FDI) limit in insurance companies from 74% to 100%, enabling complete foreign ownership. This strategic decision is intended to attract additional capital into the long-term, capital-intensive insurance sector, ensuring that insurers invest all collected premiums within the country.

*Insurance cover for 74.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yojana was provided till April 2025.

Increasing
Investments

*The IPO of LIC of India was the largest IPO ever in India and the sixth biggest IPO globally in FY22

*In February 2025, nine insurers, including HDFC Ergo and SBI General, have submitted IPO plans to IRDAI as part of a push to raise capital and strengthen governance in India’s insurance sector.

*At least six Indian reinsurance companies, plan to launch IPOs over this year and next, selling 10–15% stakes to raise capital and expand market presence.

Snapshot Showcase Infographics Reports

Last updated: Nov, 2025

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