Insurances - India

India

The Insurances market in India is projected to reach a market size (gross written premium) of €198.90bn in 2024.
Among the various segments, Life insurances dominates with a projected market volume of €102.30bn in 2024.
The average spending per capita in the Insurances market is estimated to be €138.00 in 2024.
When comparing globally, it is evident that the United States holds the highest nominal value, with a projected market size of €3,477.0bn in 2024.
The gross written premium in the Insurances market is expected to exhibit an annual growth rate (CAGR 2024-2029) of 4.81%.
This growth would result in a market volume of €251.60bn by 2029.
In terms of gross written premium, the United States is anticipated to generate the highest amount globally, with a projected market size of €3,477.0bn in 2024.
India's insurance market is experiencing a surge in demand for health insurance policies due to the increasing awareness and importance of healthcare in the country.

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Analyst Opinion

The Insurances market in India has been experiencing significant growth and evolution in recent years.

Customer preferences: Customers in India are increasingly seeking insurance products that offer comprehensive coverage at competitive prices. There is a growing demand for customizable insurance plans that cater to individual needs and preferences. Additionally, with the rise of digitalization, customers are leaning towards insurers that provide seamless online services and quick claim settlements.

Trends in the market: One prominent trend in the Indian insurance market is the increasing popularity of health and life insurance products. As awareness about the importance of insurance grows, more individuals are investing in health and life coverage to secure their financial future. Another notable trend is the emergence of InsurTech companies that are revolutionizing the way insurance is bought and sold in the country. These tech-savvy startups are leveraging technology to offer innovative insurance solutions and improve customer experience.

Local special circumstances: India's insurance market is unique due to its large population and diverse consumer base. The market is characterized by a mix of traditional insurance players and new entrants, creating a competitive landscape. Moreover, regulatory changes and government initiatives aimed at expanding insurance penetration among underserved segments are shaping the market dynamics. The cultural emphasis on financial security and protection also influences insurance buying behavior in India.

Underlying macroeconomic factors: Several macroeconomic factors are driving the growth of the insurance market in India. The country's robust economic growth, increasing disposable income, and expanding middle-class population are contributing to higher insurance penetration. Furthermore, favorable government policies, such as the introduction of digital platforms for insurance transactions and initiatives to promote insurance awareness, are propelling market development. The evolving regulatory environment and emphasis on financial inclusion are also playing a crucial role in shaping the future of the insurance sector in India.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.