India’s life insurance sector is projected to grow at 10.5% annually over the next decade—more than double the global average of 5%—according to the latest Allianz Global Insurance Report. This robust growth is being driven by India’s strong economic performance and pro-insurance government initiatives.
While China is expected to remain Asia’s largest insurance market by size, with a projected 7.8% annual growth, India is poised to be the fastest-growing. The country is on track to surpass Japan and emerge as the second-largest insurance market in Asia. Globally, Asia is forecasted to contribute over 50% of the additional premium volume, led by China, North America, and Europe.
In a bid to capitalise on this momentum, India has raised the Foreign Direct Investment (FDI) limit in the insurance sector to 100%, up from 74%. Additionally, between 2019–20 and 2021–22, the Indian government injected ₹17,450 crore (~US$2.04 billion) into Public Sector General Insurance Companies (PSGICs). This infusion supported reforms, boosted operational efficiency, and reversed years of financial losses—leading all PSGICs to return to profitability in the last fiscal year.
Meanwhile, the Property and Casualty (P&C) insurance segment is expected to grow at a 4.5% annual rate until 2035, reflecting a global rise in demand for financial protection. On the international front, developed regions like Western and North America are projected to benefit from higher interest rates, supporting 5% annual growth in life insurance premiums.
The Indian government remains committed to further strengthening public insurers through continued reforms, strategic investments, and performance monitoring, ensuring long-term competitiveness and sustainability in the insurance ecosystem.
