Global reinsurer Swiss Re said the Indian insurance market is set for a period of strong growth and will surpass other major markets in the next five years.
Swiss Re’s report “India’s Economic and Insurance Market Outlook 2026-2030: Resilient and Growing Amid Global Change” forecasts annual premium growth of 6.9% from 2026 to mid-2030, making India the fastest-growing major insurance market in the world.
Swiss Re highlighted that growth in the sector has been driven by strong macroeconomic fundamentals, growing consumer demand and regulatory reforms aimed at increasing transparency and expanding market access.
Amitabha Ray, market head, India, Swiss Re, noted: “India is a real bright spot for insurance growth in the medium term as opportunities arise, especially in health and motor insurance. We will benefit from forward-looking regulatory reforms, digital innovation and a rigorous but attractive product mix for consumers. Insurance growth will benefit India as it is an important financial shock absorber for millions of Indian households and businesses as they face financial pressures from increased natural disaster risks, rising healthcare costs and an aging population.”
Swiss Re expects India to maintain its status as one of the world’s fastest-growing major economies, with real GDP growth averaging 6.5% per year over the next five years. The company attributed the growth to resilient private consumption, supported by fiscal measures such as simplified goods and services tax (GST) rates and personal income tax relief, which boosted spending by low- and middle-income households.
Public infrastructure investment is expected to remain strong, while private capital spending should gain momentum amid lower borrowing costs, healthier corporate balance sheets and continued growth in consumer demand. Swiss Re’s analysis suggests that the direct impact of U.S. tariffs will be limited as exports to the U.S. account for only about 2% of India’s GDP, while supportive fiscal and monetary policies will help shore up any shock.
Mahesh H Puttaiah, Head of Insurance Market Analysis at Swiss Re Institute, commented: “In an uncertain world, the Indian economy remains a bright spot. A large consumer base, stable inflation and prudent fiscal policy will buffer the economy from global instability, and this will be achieved through premium growth. India looks set for a very positive medium-term growth story.”
Swiss Re expects the insurance market to grow at an annual real rate of 6.9% from 2026 to 2030, exceeding the growth rates of other major emerging and developed economies. The company predicts China’s annual growth will be around 4% and the United States will grow 2% over the same period. Growth will slow to 3.1% in 2025 as the Indian insurance market adapts to new regulations.
Swiss Re noted that reforms to the Insurance Regulatory and Development Authority of India (IRDAI) and broader policy changes are increasing transparency and reshaping market structures. Initiatives such as raising foreign direct investment limits, modernizing distribution channels and goods and services tax reforms are expected to attract new capital, expand insurance access and stimulate demand.
Swiss Re expects India, the second-largest life insurance market among emerging markets, to grow at an average annual rate of 6.8% over the next five years, supported by wider distribution, strong demand for retirement and savings solutions and continued expansion of credit markets.
Swiss Re noted that although growth momentum is expected to strengthen in the medium term, the non-life insurance sector is facing short-term headwinds from regulatory changes and rising medical costs. In the non-life insurance sector, Swiss Re expects health insurance premiums to grow at an average annual rate of 7.2%, while motor insurance is expected to grow at an annual rate of 7.5%, driven by rising vehicle penetration.
Swiss Re also emphasized that the risk of natural disasters is increasing, with an estimated US$26-29 trillion in assets at risk nationwide. Concentration in high-risk areas could have significant economic impacts, and Swiss Re recommends a combination of expanded reinsurance/insurance coverage, investment in early warning systems, climate-resilient infrastructure and stricter building codes, particularly in urban and coastal areas.
“As we navigate global uncertainty and rising natural catastrophe risks, prudent underwriting and a focus on sustainable solutions will be key to closing India’s coverage gap and ensuring long-term stability for customers and communities,” said Parvinder Singh, head of client underwriting, Swiss Re India.
Swiss Re concludes that the Indian insurance industry is entering a phase of accelerated growth, supported by favorable economic trends, regulatory reforms and growing consumer demand, making it one of the most promising insurance markets globally.
