Indian Economy News

India is poised to have the fastest-growing insurance sector among G20 nations.

  • IBEF
  • January 18, 2024

India is poised to lead the G20 nations in insurance sector growth over the next five years until 2028, with a projected real-term expansion of 7.1% in total insurance premiums, according to a report by Swiss Re. The life insurance segment is anticipated to witness a 6.7% growth during this period, driven by escalating demand for term life coverage within the middle-class demographic and the incorporation of Insurtech solutions by the industry.

Non-life premiums are expected to experience an annual average growth of 8.3% between 2024 and 2028. This growth is attributed to economic expansion, enhanced distribution channels, government backing, and favourable regulatory conditions. Despite the optimistic outlook, macroeconomic dynamics, including high-interest rates and inflation, may challenge the sector's growth. India’s robust economic performance plays a pivotal role in propelling the insurance market forward, and Swiss Re's forecasts for the next five years (2024–2028) indicate a substantial real-term growth of 7.1% in total insurance premiums. This growth surpasses global, emerging, and advanced market averages. In financial terms, the report highlights that the insurance sector in India is expected to experience a substantial increase, with the forecasted real-term growth of 7.1%, reflecting a positive trajectory for the industry.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.