India insurance market to grow 10.7% annually over next decade, fastest among major markets, says Allianz

India’s insurance market is expected to expand at an annual rate of 10.7% over the next decade, making it the fastest-growing major insurance market globally, according to the latest Global Insurance Report by Allianz Research.

The Indian insurance market grew 9.4% in 2025, with total premium income rising to $146 billion from $133 billion a year earlier. Growth was broad-based across segments, led by health insurance, which expanded 10.4%, followed by life insurance at 9.7% and property and casualty (P&C) insurance at 7.5%.

Despite being among the world’s ten largest insurance markets, India remains significantly underinsured, with insurance penetration at 3.8% of GDP. Allianz Research said large protection gaps, low pension coverage and high out-of-pocket healthcare spending will continue to support strong growth in insurance demand.

The report said that only about 46% of India’s working-age population is effectively covered by pension systems, while healthcare expenses remain heavily dependent on personal spending. Demographic changes, rising life expectancy and gaps in social protection are expected to remain key drivers of insurance adoption.

Globally, the insurance industry grew 7.1% in 2025 to $8.1 trillion, adding $536 billion to the worldwide premium pool. While growth moderated from 9.4% in 2024, it remained well above the industry’s 10-year average growth rate of 5.6%.

Allianz expects India’s health insurance segment to remain the fastest-growing, expanding at an annual rate of 12.5% through 2036. Life insurance is projected to grow 10.5% annually, while P&C insurance is expected to expand 10.2%, all significantly outpacing global averages.

Regulatory initiatives, including the Insurance Regulatory and Development Authority of India’s (IRDAI) “Insurance for All by 2047” vision and ongoing market reforms, are also expected to improve access, efficiency and long-term stability in the sector.

“India’s strong growth trajectory reflects rising awareness of protection needs across life, health and general insurance, but it also highlights the significant opportunity that remains,” said Ritu Arora, Country Head, Allianz Services in India. “As the industry continues to evolve, the focus will be on expanding access, improving affordability and ensuring that protection reaches more individuals and families, supporting both financial security and sustainable economic growth.”