India becomes ‘strongest growing’ insurance market with annual premium growth at 6.9 pc

New Delhi: The mid‑term annual premium growth in India is expected to touch 6.9 per cent between 2026 and 2030, making it the strongest growing major insurance market, a report said on Monday.

The report from reinsurance company Swiss Re said the Indian insurance sector is entering a new era of robust mid-term growth, driven by strong macroeconomic fundamentals and rising consumer demand.

The reinsurer forecasted life insurance to grow about 6.8 per cent annually, health insurance 7.2 per cent and motor insurance 7.5 per cent over 2026–2030, the report said.

Further, India’s insurance market is expected to benefit from forward-looking regulatory reform, digital innovation and a disciplined but attractive product mix for consumers.

“India is a true bright spot for insurance growth in the mid‑term as opportunities emerge, especially in health and motor insurance,” said Amitabha Ray, Swiss Re Market Head for India.

Insurance growth will act as a significant financial shock absorber for millions of Indian families and businesses as they face increased risk from natural catastrophes, increasing healthcare costs and the financial pressures of an ageing population, Ray added.

The Indian insurance sector’s strong rebound follows a slower 3.1 per cent growth in 2025 as the market adjusted to new regulations, the report said.

Reforms by the Insurance Regulatory and Development Authority of India, higher foreign direct investment limits, distribution modernisation and GST changes are expected to widen access and attract capital, the report said.

The Indian growth story is underpinned by robust private consumption, where fiscal stimulus measures, such as GST reforms and personal income tax concessions are helping spur demand from lower- and middle-income households, it said.

“As we navigate global uncertainties and rising natural catastrophe risks, prudent underwriting and a focus on sustainable solutions will be key,” said Parvinder Singh, Head of Client Underwriting India, Swiss Re.

Life insurance growth will be driven by widening distribution networks, increasing demand for retirement products and credit growth, it predicted.

IANS