India to Be Strongest Growing Insurance Mkt, Premium Growth to Rise to 6.9% By 2030: Swiss Re

India's insurance premium growth will accelerate to 6.9% over 2026–2030 outpacing China, the US and Western European markets, on strong economic fundamentals, rising demand and regulatory changes, global reinsurer Swiss Re said on Monday.

The Indian insurance sector is entering a new era of robust mid-term growth and will emerge as the strongest growing major insurance market, according to a Swiss Re analysis.

It said over the next five years, India will remain the world’s fastest-growing major economy with an estimated average real GDP growth of 6.5% underpinned by robust private consumption.

According to the report, fiscal stimulus measures, such as simplification of Goods and Services Tax (GST) rates and personal income tax concessions will help spur demand from lower and middle-income households.

Swiss Re forecasts India's insurance market to grow at an annual rate of 6.9% over 2026 to 2030 in real terms, higher than major emerging and advanced insurance markets. The Chinese market, for example is expected to grow by around 4% and the US by 2% over the same period.

This is a strong rebound from slower growth of only 3.1% in 2025, as the Indian insurance market adjusted to new regulations.

Reforms by the Insurance Regulatory and Development Authority of India (IRDAI) and broader policy changes by the government are bringing more transparency and reshaping the industry structure for the next phase of accelerated growth.

Key measures include a higher foreign direct investment (FDI) limit in the insurance sector, modernisation of distribution and goods and services tax (GST) reforms. These changes can bring new capital, widen access to insurance and spur insurance demand.

For life insurance, where India is the second-largest life insurance market amongst the emerging economies, annual growth of 6.8% over the next 5 years is expected to come from widening distribution networks, increasing demand for retirement products and credit growth.

The non-life market faces near-term challenges due to regulatory shifts and medical inflation, but growth should recover in the medium term. Health insurance is expected to grow by an average 7.2% per year over 2026–2030. Motor insurance, driven by greater vehicle uptake, will grow by 7.5% per year during the same period, it said.

Swiss Re Market Head for India Amitabha Ray said India is a bright spot for insurance growth in the mid-term as opportunities emerge, especially in health and motor insurance.

"We are set to benefit from forward-looking regulatory reform, digital innovation and a disciplined but attractive product mix for consumers," Ray said.

Swiss Re Group is one of the world's leading providers of reinsurance, insurance and other forms of insurance-based risk transfer.