The insurance sector in India is poised for significant growth, with a projected CAGR of 9.9% from INR3.35trn ($40.36bn) in 2024 to INR4.89trn ($57.3bn) in 2028, in terms of gross written premiums (GWP).
According to GlobalData, general insurance in India is expected to experience an 11.2% growth in 2024, with personal accident and health (PA&H), motor, and property insurance lines driving the majority of the premiums, accounting for 93% of the total in 2023.
Swetansha Chauhan, an insurance analyst at GlobalData, stated that the growth of India’s general insurance industry in 2023 was 13.2%, fueled by economic expansion, increasing disposable income, greater consumer awareness of insurance products, and robust regulatory reforms. This positive trend is expected to continue in 2024 and 2025.
PA&H insurance holds a significant share in India, representing 39.5% of the sector in 2024. It is projected to grow by 14.5% in 2024, driven by increased health awareness post the Covid-19 pandemic and rising medical costs.
Motor insurance ranks as the second-largest segment in general insurance, accounting for 31.1% of the industry.
The sector is expected to see a growth of 10.4% in 2024, propelled by rising vehicle sales.
Chauhan added: “The growth in vehicle sales was also fueled by the government’s vehicle scrapping policy, implemented on April 1, 2023, which mandates the scrapping of private vehicles older than 20 years and commercial vehicles older than fifteen years. Motor insurance is projected to grow at a CAGR of 7.9% during 2024-2028.”
Chauhan continued: “The recovery in the economy and increasing disposable income will continue to drive the growth of India’s general insurance industry over the next five years. Government initiatives and favorable regulatory reforms are expected to boost the insurance penetration rate in India (0.98%), which lags behind other Asian markets such as Japan (1.75%), South Korea (1.46%), Hong Kong (1.65%), and China (1.26%) in 2023.”
