Insurance market in India to reach $222 bn by FY26: Report
According to a report by homegrown consultancy firm Redseer, insurance penetration in India is likely to climb significantly, with the market expected to reach a value of close to US$ 222 billion by FY26, driven by the growing middle class and increasing internet connectivity.
According to the report, life insurance accounted for about three-fourths of the total addressable market (TAM) in FY22, with a TAM of US$ 66.5 billion, followed by motor insurance with a TAM of US$ 10 billion and retail health insurance with a TAM of US$ 4.7 billion.
New online distribution models such as business-to-consumer (B2C), business-to-business (B2B), and business-to-business-to-consumer (B2B2C) are key growth drivers, with B2C, in particular, garnering significant prospects.
Digital insurance in the US stands at 14% of the entire population and 6% in China. In India, digital penetration in insurance stands at 2%, denoting significant headroom for growth in the years to come, according to the report.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.