Insurance market in India likely to grow at 10.7 pc annually over next decade: Report

New Delhi: The insurance market in India expected to grow by 10.7 per cent annually over the next decade, ahead of nominal GDP growth of 10.1 per cent, helped by rising life expectancy and gaps in social protection, according to a report released on Wednesday.

Demographic change, rising life expectancy and gaps in social protection remain key growth drivers, Allianz Research, the economic research unit of Allianz, said in the report.

Regulatory initiatives such as IRDAI's "Insurance for All by 2047" vision and recent market reforms are expected to further support the growth, efficiency, and long-term stability of the sector, it said.

Despite ranking among the world's ten largest insurance markets, India remains significantly underinsured, with insurance penetration of 3.8 per cent of GDP, it said, adding that with only about 46 per cent of the working-age population effectively covered by pension systems and healthcare expenditure still largely funded out-of-pocket.

The report further said the Indian insurance market achieved strong growth of 9.4 per cent in 2025, with total premium income reaching USD 146 billion as against USD 133 billion in 2024.

Life insurance, which accounted for 74 per cent of the total premium income, expanded 9.7 per cent, while property and casualty insurance grew 7.5 per cent.

Health insurance remained the fastest-growing segment, with premiums rising 10.4 per cent amid persistently high medical inflation and continued gaps in public healthcare coverage.