The Indian insurance sector is poised for robust mid-term growth, supported by solid macroeconomic fundamentals and rising consumer demand, according to Swiss Re's report "India's Economic and Insurance Market Outlook 2026 2030: Resilient and Rising Amid Global Shifts".
Mid-term annual premium growth is projected at 6.9% between 2026 and 2030, positioning India as the fastest-growing major insurance market.
"India is a true bright spot for insurance growth in the mid-term as opportunities emerge, especially in health and motor insurance. We are set to benefit from forward-looking regulatory reform, digital innovation and a disciplined but attractive product mix for consumers. Insurance growth will benefit India, as it acts 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,” said Swiss Re Market Head for India Amitabha Ray.
Over the next five years, India is expected to sustain one of the world’s fastest growth rates, with average annual real GDP growth of 6.5%. Strong private consumption, supported by fiscal measures such as simplified GST rates and personal income tax cuts, is driving demand among lower- and middle-income households. Public infrastructure investment will continue to provide momentum, while private investment is set to rise on the back of lower borrowing costs, healthy corporate balance sheets, and resilient consumer spending. The impact of US tariffs is expected to be minimal, as exports to the US account for only about 2% of GDP, and supportive monetary and fiscal policies will help cushion any effect.
Swiss Re projects India’s insurance market to expand at a real annual rate of 6.9% from 2026 to 2030, outpacing other major markets. In comparison, China’s insurance sector is expected to grow by around 4% annually, while the US market is projected to grow by 2% over the same period.
India’s insurance market is set for a strong rebound after a slower 3.1% growth in 2025, as it adapts to new regulations. Reforms by the Insurance Regulatory and Development Authority of India (IRDAI) and broader government policies are increasing transparency and reshaping the industry for accelerated growth. Key measures include higher foreign direct investment (FDI) limits, modernisation of distribution channels and GST reforms, which are expected to attract new capital, expand access, and boost demand.
In life insurance—the second-largest market among emerging economies—annual growth of 6.8% over the next five years is anticipated, driven by expanding distribution networks, rising demand for retirement products and credit growth. The non-life sector faces short-term challenges from regulatory changes and medical inflation, but medium-term growth is expected to recover.
Health insurance is forecast to grow by 7.2% annually from 2026–2030, while motor insurance, supported by increased vehicle ownership, is projected to growby 7.5% per year over the same period.