India’s growth outlook is optimistic, with its insurance sector forecasted to grow the fastest among G20 countries, according to Swiss Re.
Total insurance premiums in India are forecasted to grow annually by 7.1 percent in real terms from 2024 to 2028, according to a report by Swiss Re Institute. This is well above the global average of 2.4 percent, as well as the 5.1 percent average for emerging markets and 1.7 percent average for developed markets.
The country's insurance penetration will also rise from 3.8 percent to 4.5 percent in 2034. By segment, the life market accounts for three-quarters of total insurance premiums, with a forecasted annual growth rate of 6.7 percent for the coming decade, while non-life premiums', including health, are expected to grow 8.3 percent per year.
Catastrophe Protection
In addition, Swiss Re also noted a significant gap in protection against catastrophes in India including earthquakes, floods, tropical cyclones, drought and wildfires. From 2013 to 2022, such disasters caused an average annual economic loss of $8 billion in the country.
«India has […] made good progress on risk mitigation measures for tropical cyclones, such as setting up early warning systems. But there is a long way to go on this front for other hazards (e.g. floods),» said Mahesh H Puttaiah, head group economic & sigma research Bangalore of Swiss Re Institute.
Government Support
Meanwhile, local authorities are making various efforts that will drive growth, including a target announced by the Insurance Regulatory and Development Authority of India for all citizens to obtain «appropriate life, health and property insurance cover» by 2047 with several related initiatives and reforms introduced.
«India has made strong progress in developing the insurance sector and there remains significant potential for growth given the country's low insurance penetration,» Puttaiah added.
