India is set to take center stage in the global insurance market, with the country poised to lead the G20 nations in premium growth. According to Swiss Re’s latest insurance market outlook report, India’s insurance premiums are projected to expand at an impressive average rate of 7.3% annually between 2025 and 2029.
The report, released on Tuesday, highlights India’s emergence as a global economic powerhouse, driven by strong domestic consumption, increased private investment, and forward-looking policy reforms.
India’s Economic Rise
Swiss Re predicts that India will surpass Germany and Japan to become the world’s third-largest economy by the end of this decade. Steady global economic growth—forecasted at 2.8% in 2025 and 2.7% in 2026—is expected to further bolster this trajectory.
Between 2025 and 2034, India is forecast to be the fastest-growing G20 economy, with an average real GDP growth of 6.2% annually (10% in nominal terms). For 2025 specifically, GDP growth is projected at 6.9%, up from 6.5% in 2024.
Insurance Market Highlights
Life Insurance Growth
Life insurance continues to dominate India’s insurance landscape, accounting for 74% of total premium volumes. Following modest growth of 0.7% in 2023, attributed to regulatory and taxation changes, life insurance premiums are expected to rebound. They are forecast to grow by 4.8% in 2024, 5% in 2025, and average 6.9% annually from 2025 to 2029.
Non-Life Insurance Expansion
The non-life insurance segment is also on a robust growth trajectory. It is projected to expand at an average annual rate of 7.3% between 2025 and 2029, up from 5.7% in 2024. Key growth drivers include rising risk awareness, economic growth, and regulatory support for digital transformation. Health and motor insurance are leading this segment, while agricultural insurance continues to gain traction under schemes like the Pradhan Mantri Fasal Bima Yojana (PMFBY).
Risk Hotspots and Challenges
India’s rapid economic growth is creating risk hotspots in states such as Gujarat, Maharashtra, Tamil Nadu, and Delhi. These regions, home to industrial clusters, logistics hubs, and renewable energy projects, face heightened exposure to natural disasters such as floods and earthquakes.
In 2023, natural catastrophes caused $12 billion in economic losses in India, far exceeding the 10-year average of $8 billion. Mahesh H. Puttaiah, Head of Insurance Market Analysis at Swiss Re, emphasized the urgency of strengthening resilience through better risk identification and assessment.
Transition to Net-Zero and Sustainable Growth
India’s goal of achieving net-zero emissions by 2070 is another factor shaping its insurance market. Progress in renewable energy, low-carbon transportation, and industrial decarbonization is noteworthy, but significant investments in sustainable infrastructure are needed to accelerate the transition.
The insurance sector plays a critical role in this shift. Re-insurers can provide tailored risk solutions for large-scale green projects, leveraging advanced risk engineering and data-driven underwriting to enhance their viability.
Outlook
India’s dynamic economy and thriving insurance market are positioning the country as a leader both within the G20 and globally. The findings from Swiss Re underscore the insurance industry’s pivotal role in managing risks, supporting sustainable development, and driving India’s ambitious economic and environmental objectives.
Key Takeaway
With its fast-growing economy, India is not just securing its place among global leaders but also setting the benchmark for insurance market growth. The country’s trajectory is an inspiring case for how economies can balance growth, resilience, and sustainability.
