Insurance to grow fastest in India among G20: Swiss Re

MUMBAI: India’s insurance sector is set to be the fastest growing among G20 countries from 2024 to 2028, reinsurance giant Swiss Re said.
The insurer forecasts a robust inflation-adjusted growth rate of 7.1% for India’s insurance market over the next five years, nearly three times higher than the global average of 2.4%. The Swiss Re Institute (SRI) anticipates an increase in insurance penetration (the contribution of insurance to GDP) from 3.8% to 4.5% by 2034.
Despite annual economic losses in India reaching $8 billion (inflation-adjusted) due to natural calamities over the last decade, insurance protection against such risks remains low, with 93% of exposures uninsured, according to SRI’s resilience analysis. The rise in premiums is expected to be fuelled by economic growth, an expanding middle class, and regulatory support, with Irdai aiming for universal coverage by 2047.
Emerging markets, including India, are projected to grow at 5.1% over the next five years, while advanced markets are expected to grow at a slower rate of 1.7%. In terms of segment split, the life insurance market, comprising about three-quarters of total premiums in India, is forecasted to grow at an annual average of 6.7% from 2024 to 2028, while nonlife premiums, including health, are expected to expand by an average of 8.3%.
Swiss Re Institute recognises India’s progress in risk mitigation for tropical cyclones but notes the need for further measures, especially for hazards like floods. The institute emphasises the role of the insurance industry in providing solutions to manage financial losses resulting from natural catastrophes. Mahesh H Puttaiah, head of group economic & sigma research Bangalore at Swiss Re Institute, highlights that insurance and reinsurance solutions at the state level can support governments in relief efforts, reinstating crucial services, and rebuilding public infrastructure.

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