Market Insights Financial Insurances Non-life insurances

Property Insurance - India

India

The Property Insurance market market in India is expected to witness a significant growth in the coming years.
By 2024, the market size, measured by the gross written premium, is projected to reach INR US$2.98bn.
This indicates a promising potential for the industry in the country.
Furthermore, the average spending per capita in the Property Insurance market market is estimated to be INR US$2.07 in 2024.
This figure highlights the individual's willingness to invest in insurance coverage for their properties, indicating a growing awareness of the importance of protecting assets.
Looking ahead, the market is anticipated to experience a steady annual growth rate (CAGR 2024-2028) of 3.58%.
This consistent growth trajectory is expected to result in a market volume of INR US$3.43bn by 2028, further solidifying the significance of the Property Insurance market sector in India.
In a global comparison, it is noteworthy that the United States is expected to generate the highest gross written premium in 2024, amounting to approximately US$214.7bn.
This indicates the dominance of the United States in terms of market size and reinforces the importance of the Property Insurance market industry on a global scale.
As in India continues to develop and expand its property market, the Property Insurance market segment has a promising future with opportunities for growth and investment.
India's property insurance market is experiencing rapid growth due to increasing urbanization and the rising awareness of the need for protection against natural disasters.

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Analyst Opinion

The Property Insurance market in India has been experiencing significant growth and development in recent years.

Customer preferences: Customers in India are increasingly recognizing the importance of protecting their properties against various risks such as natural disasters, theft, and damage. This growing awareness has led to a surge in demand for property insurance policies across the country.

Trends in the market: One noticeable trend in the Indian Property Insurance market is the shift towards customized insurance solutions. Insurance companies are now offering tailored policies to meet the specific needs of different property owners, whether it be residential, commercial, or industrial properties. This trend is driven by the desire to provide comprehensive coverage and enhance customer satisfaction.

Local special circumstances: India's diverse geographical landscape and varying climatic conditions play a crucial role in shaping the Property Insurance market. Regions prone to natural disasters such as floods, cyclones, and earthquakes have higher demand for insurance coverage, leading to specialized products catering to these specific risks. Additionally, rapid urbanization and infrastructural developments in major cities have also contributed to the growth of the property insurance sector.

Underlying macroeconomic factors: The overall economic growth in India, coupled with rising disposable incomes, has boosted the property market, leading to an increased need for insurance protection. Furthermore, regulatory reforms and initiatives by the government to promote insurance penetration in the country have created a conducive environment for the expansion of the Property Insurance market. As a result, insurance companies are leveraging technology and digital platforms to reach a wider customer base and streamline their operations in this evolving landscape.

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.