Non-life insurances - India

India

The Non-life insurance market in India is expected to witness significant growth in the coming years.
By 2024, the market size, measured by gross written premium, is projected to reach INR €97.60bn.
This indicates a positive trend in the country's insurance sector.
In 2024, the average spending per capita in the Non-life insurance market is estimated to be INR €67.70.
This reflects the level of individual participation and interest in insurance coverage across in India.
Furthermore, the gross written premium is anticipated to experience a compound annual growth rate (CAGR 2024-2029) of 6.40%.
This steady growth trajectory is expected to result in a market volume of INR €133.10bn by 2029.
When compared globally, it is noteworthy that the United States is expected to generate the highest gross written premium in 2024, amounting to €2,318.0bn.
This highlights the significance of the insurance industry the United States and its position as a global leader in this market segment.
India's non-life insurance market is witnessing a surge in demand due to increasing awareness about risk management and growing middle-class population.

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Analyst Opinion

The Non-life insurances market in India has been experiencing significant growth and development in recent years.

Customer preferences: Customers in India are increasingly seeking non-life insurance products that offer comprehensive coverage at affordable prices. They prioritize policies that provide protection against a wide range of risks such as natural disasters, accidents, and health emergencies. Additionally, there is a growing demand for customizable insurance plans that cater to specific needs and preferences.

Trends in the market: One notable trend in the Indian non-life insurance market is the rise of digital insurance platforms. Insurers are leveraging technology to streamline the purchasing process, offer instant policy issuance, and provide round-the-clock customer support. This shift towards digitalization has not only improved operational efficiency but has also enhanced the overall customer experience.

Local special circumstances: India's unique demographic profile, characterized by a large and diverse population, plays a significant role in shaping the non-life insurance market. With a rising middle class and increasing urbanization, there is a growing awareness of the importance of insurance protection. Moreover, regulatory reforms and initiatives aimed at expanding insurance coverage have created a more conducive environment for market growth.

Underlying macroeconomic factors: The economic landscape in India, marked by steady GDP growth and increasing disposable incomes, has contributed to the expansion of the non-life insurance sector. As individuals and businesses accumulate wealth, there is a greater emphasis on risk management and financial security. Additionally, the government's focus on promoting insurance penetration and enhancing financial literacy has further fueled the demand for non-life insurance products.

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.