Life insurance - India | Statista Market Forecast

The Life insurance market market in India is projected to reach a market size (gross written premium) of INR US$111.50bn by 2024.
The average spending per capita in the Life insurance market market is expected to amount to INR US$77.34 in 2024.
With an annual growth rate (CAGR 2024-2029) of 3.80%, the gross written premium is projected to result in a market volume of INR US$134.30bn by 2029.
In global comparison, the United States is expected to generate the highest gross written premium of US$1.3tn in 2024.
The life insurance market in India is experiencing a surge in demand due to the growing awareness of the need for financial security among the country's rapidly expanding middle class.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

The Life insurance market in India has been experiencing significant growth and transformation in recent years.

Customer preferences: Customers in India are increasingly recognizing the importance of financial security and protection for themselves and their families, leading to a growing demand for life insurance products. With rising disposable incomes and a greater awareness of the need for long-term financial planning, individuals are actively seeking life insurance coverage to safeguard their loved ones' future.

Trends in the market: One prominent trend in the Indian life insurance market is the shift towards digitalization. Insurers are leveraging technology to enhance customer experience, streamline operations, and offer innovative products tailored to the evolving needs of policyholders. Additionally, there is a noticeable trend towards customization, with insurers providing flexible policy options and add-on benefits to cater to diverse customer requirements.

Local special circumstances: The regulatory environment in India plays a crucial role in shaping the life insurance market. Regulatory reforms aimed at increasing transparency, improving customer protection, and enhancing market stability have positively influenced the industry's growth trajectory. Moreover, the presence of a large population with a considerable proportion of young individuals presents a significant opportunity for insurers to expand their customer base and drive market penetration.

Underlying macroeconomic factors: Several macroeconomic factors contribute to the development of the life insurance market in India. Economic growth, urbanization, and demographic shifts are key drivers propelling the demand for life insurance products. As the Indian economy continues to expand, more individuals are seeking avenues to secure their financial well-being, leading to a surge in life insurance uptake. Additionally, favorable government initiatives and tax benefits associated with life insurance policies further incentivize individuals to invest in protection and savings-oriented products. Overall, the dynamic landscape of the life insurance market in India reflects a confluence of changing customer preferences, technological advancements, regulatory dynamics, and macroeconomic trends driving the industry's evolution and expansion.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.