India’s life insurance market is projected to grow at a compound annual growth rate (CAGR) of 10.5% over the next decade, overtaking Japan to become the second-largest in Asia, a report by Allianz Research said.
According to the Allianz Global Insurance Report 2025, China’s life insurance sector is projected to grow at a CAGR of 7.8% between 2025 and 2035, and will continue to dominate the region in absolute terms. However, it identifies India as the real growth champion. “As a result, the Indian life insurance market will overtake Japan to become the second largest in the region,” the report said.
In 2024, India’s overall insurance market (across all segments) grew by 10.6%, outpacing the previous year’s 7.7% expansion, with total premium income reaching $145 billion. All segments contributed to this momentum, led by health insurance (still the smallest segment) which surged 20.8%. Life insurance, which accounts for nearly three-quarters of the market, also recorded a robust growth of 10.6%, up from 7.7% in 2023.
The report projects India’s health insurance market to grow at a CAGR of 18.5% between 2025 and 2035. Despite this rapid expansion, India continues to be one of the least developed insurance markets in Asia, with average household insurance spending around $100 – less than a fifth of what households in China spend.
India’s growth in the property and casualty (P&C) segment eased slightly from 8.9% in 2023 to 7.9% in 2024, but it is projected to grow by a CAGR of 9.5% over the next decade.
According to the report, the global insurance industry is estimated to have grown by 8.6% in 2024. This again exceeded the exceptional +8.2% growth recorded in the previous year.
Insurance companies worldwide experienced an increase in premiums of $577 billion, bringing total premium income to $7.3 trillion. Life insurance remained the largest segment with premium income of $3,005 billion, followed by P&C insurance ($2,510 billion) and health insurance ($1,741 billion).