India to top G20 with 7.3% insurance premium growth over 2025-29: Report | Current Affairs | Vision IAS

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India to top G20 with 7.3% insurance premium growth over 2025-29: Report

2 min read

India's Insurance Market Growth

India's insurance market is anticipated to be the fastest-growing within the G20 over the next five years, with total premium volumes - both life and non-life - expected to increase by an average of 7.3% annually in real terms. This growth is supported by macroeconomic stability and a favorable regulatory environment.

Life Insurance Sector

  • Accounts for 74% of India's total insurance premium volumes.
  • Projected real growth rates: 
    • 2024: 4.8%
    • 2025: 5%
    • 2025-2029: 6.9%
  • Growth was minimal at 0.7% in 2023 due to regulatory and taxation changes affecting the savings segment.

Non-Life Insurance Sector

  • Expected growth of 7.3% in 2024, up from 5.7% in the previous year.
  • Factors contributing to growth include: 
    • Rising risk awareness
    • Robust economic growth
    • Regulatory initiatives promoting digitalization
  • Improved penetration in agricultural insurance following changes to the Pradhan Mantri Fasal Bima Yojana in 2023.

Economic Outlook

  • India is expected to surpass Germany and Japan, becoming the world's third-largest economy by the end of the decade.
  • Growth driven by domestic consumption, private investment, and economic reforms.
  • Support from steady global growth: 
    • 2025: 2.8% growth
    • 2026: 2.7% growth

Challenges and Risks

Despite rapid economic growth, vulnerabilities from natural catastrophes remain a concern. Accurate assessment and risk management are crucial, particularly in regions like Gujarat, Maharashtra, Tamil Nadu, and Delhi, which are prone to floods and earthquakes.

  • Natural catastrophes in 2023 resulted in economic losses of USD 12 billion, exceeding the previous 10-year average of USD 8 billion.
  • Tags :
  • Insurance
  • Economic Outlook
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