India to lead G20 insurance growth with 7.3% annual premium surge: Swiss Re

India’s insurance market is poised for rapid growth, with the country projected to lead the G20 nations in premium expansion at an average rate of 7.3 percent annually between 2025 and 2029, according to Swiss Re’s latest insurance market outlook report. 

Released on Tuesday, the report underscores India’s emergence as a global economic powerhouse, supported by robust domestic consumption, private investment, and progressive reforms.

Swiss Re also forecasts that India will surpass Germany and Japan to become the world’s third-largest economy by the end of this decade. This trajectory is expected to benefit from steady global economic growth, projected at 2.8 percent in 2025 and 2.7 percent in 2026.

Swiss Re also expects India to be the fastest growing G20 economy over the next ten years (2025-2034) with average real GDP growth of 6.2 percent annually (10 percent in nominal terms).

It also sees India GDP growing 6.9 percent in 2025, up from 6.5 percent in 2024 and higher than the annual average of 5.8 percent over previous ten years. 

Insurance Market Highlights

India’s insurance sector is set to become the fastest-growing among G20 economies, fuelled by macroeconomic tailwinds, advancing digitalization, and a favorable regulatory environment.

 •   Life Insurance Growth:

Life insurance remains the cornerstone of India’s insurance market, contributing 74 percent of total premium volumes. After a modest 0.7 percent growth in 2023 due to regulatory and taxation changes affecting the savings segment, life insurance premiums are forecast to grow by 4.8 percent in 2024 and 5 percent in 2025. For the 2025-29 period, growth is expected to average 6.9 percent annually.

•   Non-life insurance expansion:

Non-life insurance is anticipated to grow at 7.3 percent annually between 2025 and 2029, up from 5.7 percent in 2024. Rising risk awareness, strong economic growth, and regulatory support for digitalization are driving this segment. Key areas include health and motor insurance, while agricultural insurance has gained traction through updates to the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme.

Risk hotspots and Challenges

India’s rapid economic expansion is creating risk hotspots, particularly in Gujarat, Maharashtra, Tamil Nadu, and Delhi. These regions, characterized by industrial clusters, logistics hubs, renewable energy projects, and other critical assets, face heightened vulnerability to floods, earthquakes, and other natural disasters.

In 2023, natural catastrophes in India resulted in economic losses of $12 billion, significantly above the 10-year average of $8 billion. “The rapid pace of India’s economic growth has moved faster than actions taken to reduce vulnerabilities posed by natural catastrophes,” said Mahesh H. Puttaiah, Head of Insurance Market Analysis at Swiss Re. He emphasized the need for identifying and assessing risks in these hotspots to strengthen resilience.

Transition to Net-Zero and Sustainable growth

India’s push toward achieving net-zero emissions by 2070 is another critical factor influencing the insurance market. The country has made notable progress in renewable energy adoption, low-carbon transportation, and industrial decarbonization. However, this transition requires significant investment in sustainable infrastructure and technologies.

The insurance sector has a pivotal role in supporting this transition. Re-insurers can enhance the viability of large-scale green projects by offering tailored risk solutions based on advanced risk engineering and underwriting data, Swiss Re highlighted.

Outlook

With its fast-growing economy and dynamic insurance market, India is positioned to be a leader not only within the G20 but also on the global stage. Swiss Re’s findings underscore the critical role of the insurance industry in mitigating risks, enabling sustainable development, and supporting India’s ambitious economic and environmental goals.

Related Content

South Korean officials make fresh attempt to arrest President Yoon Suk Yeol

South Korean officials make fresh attempt to arrest President Yoon Suk Yeol

Morning Headlines

Leave a Comment