India’s Insurance Premiums Rise 9.4%, Growth To Accelerate, Allianz Says
India's insurance market expanded by 9.4 per cent in 2025, outpacing many major economies as rising demand for financial protection, healthcare coverage and retirement security fuelled growth across all segments, according to a report by Allianz Research.Total premium income rose to USD146 billion in 2025 from USD133 billion a year earlier, the economic research unit of Allianz said in its Global Insurance Report 2026.
Life insurance, which accounted for nearly three-quarters of the market, grew by 9.7 per cent, while property and casualty insurance expanded by 7.5 per cent. Health insurance remained the fastest-growing segment, with premiums increasing by 10.4 per cent amid high medical inflation and continuing gaps in public healthcare coverage.
The report said India was among the world's 10 largest insurance markets but remained significantly underinsured, with insurance penetration standing at 3.8 per cent of gross domestic product (GDP).
According to Allianz Research, only about 46 per cent of India's working-age population is effectively covered by pension systems, while healthcare spending continues to be funded largely through out-of-pocket expenses, creating substantial room for future expansion.
As a result, the research unit expects India's insurance market to grow at an average annual rate of 10.7 per cent over the next decade, exceeding projected nominal GDP growth of 10.1 per cent and making it the fastest-growing major insurance market globally.
The report identified demographic changes, rising life expectancy and gaps in social protection systems as key drivers of long-term growth.
It also said regulatory initiatives, including the Insurance Regulatory and Development Authority of India's "Insurance for All by 2047" vision and recent market reforms, were expected to support sector growth, improve efficiency and strengthen long-term stability.
India's outlook stands in contrast to a broader moderation in global insurance growth. Worldwide insurance premiums rose 7.1 per cent in 2025 to USD8.1 trillion, adding USD536 billion to the global premium pool. Although slower than the 9.4 per cent expansion recorded in 2024, growth remained above the industry's 10-year average growth rate of 5.6 per cent.
Globally, life insurance remained the largest segment with premiums of USD3.36 trillion, followed by property and casualty insurance at USD2.73 trillion and health insurance at USD1.98 trillion.
The report said Asia would remain the primary engine of global insurance growth over the coming decade, with India and China becoming increasingly important contributors as the industry's centre of gravity shifts eastward.
Life insurance premiums across Asia rose 9.9 per cent in 2025, reinforcing the region's position as the world's largest life insurance market.
"Insurance is becoming increasingly fundamental to economic resilience in a world marked by greater uncertainty and fragmentation," Ritu Arora, Country Head of Allianz Services in India, said in the report.
She said India's growth reflected increasing awareness of protection needs across life, health and general insurance while also highlighting the significant opportunity that remains to expand coverage.
Looking ahead, Allianz Research forecasts annual growth of 10.5 per cent in India's life insurance market through 2036, while property and casualty insurance is expected to grow by 10.2 per cent annually. Health insurance is projected to remain the most dynamic segment, with annual growth of 12.5 per cent over the period.
The report said geopolitical fragmentation and a more complex global operating environment were increasing the importance of resilience and affordability in insurance markets worldwide.
Globally, Allianz Research expects insurance premiums to grow by an average of 5.3 per cent annually over the next decade, supported by increasing demand for protection against economic, health and climate-related risks.
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