India's insurance premiums to grow 6.9% annually till 2030: Report

Swiss Re flags India as the world's fastest-growing major insurance market by the end of the decade

India’s insurance sector is entering a phase of sustained growth, with premium expansion expected to outpace major global markets over the rest of the decade. According to a new analysis by global reinsurer Swiss Re, India’s insurance premiums are forecast to grow at an annual real rate of 6.9 per cent between 2026 and 2030, making it the fastest-growing major insurance market globally.

 

This growth rate is significantly higher than that projected for China (around 4 per cent) and the United States (about 2 per cent) over the same period.

 

Why insurance growth is picking up

 

Swiss Re’s outlook is anchored in India’s strong economic fundamentals. The reinsurer expects India to remain the world’s fastest-growing major economy over the next five years, with average real GDP growth of about 6.5 per cent. Robust private consumption is expected to be a key driver.

 

Fiscal measures are also likely to support demand. Simplification of goods and services tax (GST) rates and personal income tax concessions are expected to increase spending power, particularly among lower- and middle-income households. This, in turn, should translate into higher uptake of insurance products.

 

The projected growth marks a sharp rebound from 2025, when insurance premium growth slowed to around 3.1 per cent as the industry adjusted to new regulations.

 

Role of regulatory reforms

Reforms by the Insurance Regulatory and Development Authority of India (Irdai), along with broader policy changes by the government, are reshaping the sector. According to Swiss Re, these measures are improving transparency and preparing the industry for its next growth phase.

 

Key reforms include:

• Higher foreign direct investment limits in insurance
• Modernisation of distribution channels
• GST-related reforms affecting insurance products

 

These steps are expected to attract fresh capital, widen access to insurance, and stimulate demand across segments.

 

What lies ahead for life and non-life insurance

Life insurance is expected to remain a major growth engine. India is already the second-largest life insurance market among emerging economies, and Swiss Re projects annual growth of about 6.8 per cent over the next five years. Expansion of distribution networks, rising demand for retirement products, and steady credit growth are likely to support this trend.

 

The non-life segment faces some near-term challenges, including regulatory changes and rising medical inflation.

 

However, medium-term prospects remain strong.

 

Health insurance premiums are expected to grow by an average of 7.2 per cent annually between 2026 and 2030.

 

Motor insurance, supported by increasing vehicle ownership, is projected to grow by about 7.5 per cent per year during the same period.

 

What this means for consumers

A faster-growing insurance market typically brings greater choice, wider coverage, and more competitive products.

 

Swiss Re Market Head for India Amitabha Ray said India remains a bright spot for insurance growth, particularly in health and motor segments, PTI reported. He added that regulatory reforms, digital innovation, and a more disciplined product mix could benefit consumers over the medium term.

 

For buyers, the coming years may offer more tailored products and improved access, but careful comparison and understanding of policy terms will remain essential.

 

(with inputs from PTI)