Business EconomyPosted at: Jun 3 2026 4:37PM


India emerges as fastest-growing major insurance market, global premiums top USD 8 tn:Report

New Delhi, Jun 3 (UNI) India is set to emerge as the world's fastest-growing major insurance market over the next decade, driven by rising demand for financial protection, demographic changes and ongoing regulatory reforms, according to the latest Global Insurance Report 2026 released by Allianz Research on Wednesday here.
The report said India's insurance industry recorded robust growth of 9.4 per cent in 2025, with total premium income rising to USD 146 billion from USD 133 billion a year earlier. Growth was broad-based across all major segments, reflecting increasing awareness of protection needs among consumers and businesses.
Life insurance, which accounts for nearly three-fourths of the country's insurance market, expanded by 9.7 per cent during the year.
Health insurance remained the fastest-growing segment with premium income rising 10.4 per cent, supported by high medical inflation and continued gaps in public healthcare coverage. Property and Casualty (P&C) insurance, which includes motor, property and liability coverage, grew by 7.5 per cent.
Despite becoming one of the world's ten largest insurance markets, India remains significantly underinsured. Insurance penetration stands at just 3.8 per cent of GDP, while only around 46 per cent of the working-age population is effectively covered by pension systems.
A large share of healthcare expenditure also continues to be borne directly by households.
The report projects that India's insurance market will expand at an annual rate of 10.7 per cent over the next decade, outpacing the country's expected nominal GDP growth of 10.1 per cent. Rising life expectancy, population ageing and persistent gaps in social security coverage are expected to drive demand across life, health and general insurance products.
Allianz Research also highlighted the role of regulatory initiatives, including the Insurance Regulatory and Development Authority of India's "Insurance for All by 2047" vision, in supporting the long-term expansion and efficiency of the sector.
Commenting on the findings, Ritu Arora, Country Head of Allianz Services India, said insurance is becoming increasingly critical to economic resilience in an environment marked by growing uncertainty and fragmentation.
She noted that India's strong growth reflects rising awareness of protection needs across life, health and general insurance, while also underscoring the significant untapped potential that remains in the market.
According to her, the industry's focus will increasingly be on improving affordability, expanding access and ensuring broader financial protection for individuals and families.
Globally, the insurance industry continued to expand strongly in 2025, with total premiums rising 7.1 per cent to reach USD 8.1 trillion. Although growth moderated from 9.4 per cent in 2024, it remained well above the long-term average, adding USD 536 billion to the global premium pool.
Life insurance remained the largest segment globally with premium income of USD 3.36 trillion, followed by Property and Casualty insurance at USD 2.73 trillion and health insurance at USD 1.98 trillion.
Health insurance emerged as the fastest-growing global segment, recording growth of 12.3 per cent in 2025, the strongest increase in more than a decade. Allianz attributed the expansion to ageing populations, rising healthcare costs and increasing pressure on public healthcare systems worldwide.
Looking ahead, Allianz expects the global insurance industry to grow at an average annual rate of 5.3 per cent over the next ten years. Health insurance is forecast to remain the most dynamic segment globally with annual growth of 6.7 per cent, while India is expected to outperform with projected annual growth of 12.5 per cent in health insurance, 10.5 per cent in life insurance and 10.2 per cent in Property and Casualty insurance.
The report also predicts a continuing shift in the global insurance landscape towards Asia, with India and China gaining increasing importance. Asia is already the world's largest life insurance market and is expected to remain the primary engine of industry growth in the coming decade.
Highlighting broader global challenges, Arora said geopolitical fragmentation is reshaping the world economy, with resilience increasingly replacing efficiency as the dominant principle guiding businesses and policymakers. In such an environment, she said, insurance will play an even more strategic role not only in managing risks but also in supporting investment, innovation and economic confidence.
With protection needs rising across both developed and emerging economies, Allianz believes the insurance sector is well positioned to remain a key driver of economic stability and growth over the next decade.
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