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 US$105.00bn.
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 US$72.80.
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 2024-2028) of 6.17%.
This steady growth trajectory is expected to result in a market volume of INR US$133.40bn by 2028.
When compared globally, it is noteworthy that the United States is expected to generate the highest gross written premium in 2024, amounting to US$3,371.0bn.
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.