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India's Life Insurance Sector Set to Grow at 10.5%, Doubling Global Average of 5%.

Banking & Finance | Dated: 30 May 2025

In May 2025, the Allianz Global Insurance Report 2025 by Allianz Global Insurance projected that India’s life insurance market will grow at a compound annual growth rate (CAGR) of 10.5% over the next decade, significantly higher than the global average of 5%.

🎯 Key Highlights:

  • - India is set to surpass Japan, becoming the second-largest life insurance market in Asia due to sustained growth at 10.5% CAGR over the next ten years.
  • - The majority of new premium growth will originate in Asia, particularly from China, followed by India. North America and Europe will follow behind.

💡 Other Important Facts:

  • (i) India’s total insurance market grew by 10.6% in 2024, up from 7.7% in 2023. The premium income reached USD 145 billion.
  • (ii) Health insurance showed the strongest growth in 2024 at 20.8%, even though it remains the smallest segment in the insurance market. Meanwhile, life insurance, which holds nearly 75% of the total market share, experienced a significant growth of 10.6% in 2024, rising from 7.7% in the previous year, 2023.

📚 Test Your Knowledge:

Recently, what is the projected compound annual growth rate (CAGR) of India’s life insurance sector over the next decade?

Correct Answer: 10.5%

🚀 Quick Recap: