According to Swiss Re, a global reinsurer, India’s insurance market is poised for a period of robust growth, outpacing other major markets over the next five years.
Swiss Re’s report, “India’s economic and insurance market outlook 2026-2030: resilient and rising amid global shifts,” forecasts mid-term annual premium growth of 6.9% between 2026 and 2030, positioning India as the fastest-growing major insurance market worldwide.
Swiss Re highlights that the sector’s growth is being driven by strong macroeconomic fundamentals, rising consumer demand, and regulatory reforms designed to improve transparency and broaden market access.
Amitabha Ray, Swiss Re Market Head for India, noted: “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 business as they face increased risk from natural catastrophes, increasing healthcare costs and the financial pressures of an ageing population.”
Swiss Re projects that India will maintain its position among the world’s fastest-growing major economies, with average annual real GDP growth of 6.5% over the next five years. The company attributes this growth to resilient private consumption, supported by fiscal measures such as simplification of Goods and Services Tax (GST) rates and personal income tax reliefs that boost spending among lower- and middle-income households.
Public infrastructure investment is expected to remain strong, while private capital expenditure should gain momentum amid lower borrowing costs, healthier corporate balance sheets, and sustained consumer demand. Swiss Re analysis indicates that the direct impact of US tariffs will be limited, as exports to the US account for only around 2% of India’s GDP, with supportive fiscal and monetary policies helping support any shocks.
Mahesh H Puttaiah, Head of Insurance Market Analysis at Swiss Re Institute, commented: “India’s economy remains a bright spot in an uncertain world. The large consumer base, stable inflation and fiscal prudence will buffer the economy against global instability, and this will flow through insurance premium growth. India looks set for a very positive mid-term growth story.”
Swiss Re expects the insurance market to expand at 6.9% annually from 2026 to 2030 in real terms, exceeding growth rates in other major emerging and advanced economies. The company forecasts that China will grow around 4% annually and the US by 2% over the same period. This follows a slower growth phase of 3.1% in 2025 as India’s insurance market adapted to new regulations.
Swiss Re notes that reforms by the Insurance Regulatory and Development Authority of India (IRDAI), alongside broader policy changes, are fostering greater transparency and reshaping the market structure. Initiatives such as higher foreign direct investment limits, modernized distribution channels, and GST reforms are expected to attract new capital, broaden insurance access, and stimulate demand.
Swiss Re expects India’s life insurance segment, which is the second largest among emerging markets, to record average annual growth of 6.8% over the coming five years, supported by broader distribution reach, stronger demand for retirement and savings solutions, and continued expansion in credit markets.
Swiss Re notes that the non-life segment is experiencing short-term headwinds from regulatory changes and rising medical costs, although growth momentum is anticipated to strengthen in the medium term. Within non-life insurance, Swiss Re projects health insurance premiums to increase by an average of 7.2% per year, while motor insurance is forecast to grow at an annual rate of 7.5%, underpinned by rising vehicle penetration.
Swiss Re also emphasises the rising exposure to natural catastrophes, with an estimated USD 26–29 trillion in assets at risk nationally. Concentration in high-risk areas could have substantial economic implications, and Swiss Re recommends a combination of expanded re/insurance coverage, investment in early warning systems, climate-resilient infrastructure, and stricter building codes, particularly in urban and coastal regions.
Parvinder Singh, Swiss Re’s Head of Client Underwriting India, said: “As we navigate global uncertainties and rising natural catastrophe risks, prudent underwriting and a focus on sustainable solutions will be key to strengthening India’s protection gap and ensuring long-term stability for our clients and communities.”
Swiss Re concludes that India’s insurance sector is entering a phase of accelerated growth, supported by favourable economic trends, regulatory reforms, and rising consumer demand, making it one of the most promising insurance markets globally.
