Summary:

Allianz Worldwide Insurance predicts that India’s life insurance market will grow at a rate of 10.5% annually over the next decade, more than double the global average of 5%. Driven by economic growth and government support, India is expected to be Asia’s fastest-growing market, surpassing Japan to become the region’s second largest. China will remain the largest market, growing at 7.8%. Overall, Asia will account for more than half of the global premium growth, alongside North America and Europe.

To stimulate growth, India raised the Foreign Direct Investment (FDI) limit in insurance from 74% to 100%. The government invested Rs. 17,450 crore (US$ 2.04 billion) in Public Sector General Insurance Companies (PSGICs) between 2019-20 and 2021-22, resulting in all PSGICs becoming profitable after years of losses. The Property and Casualty segment is projected to grow at a 4.5% annual rate until 2035, while rising interest rates are expected to support life insurance growth.

Source: IBEF

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