India’s life insurance market is set to grow at an annual rate of 10.5% over the next decade—more than double the global average of 5%—according to a new report from Allianz Global Insurance.
The report attributes this rapid expansion to India’s rising economic activity and supportive government policies aimed at expanding insurance coverage. It highlights that the majority of global growth in life insurance premiums will come from Asia, with China remaining the largest contributor. However, India is expected to outpace all others in terms of growth rate.
“While China will continue to dominate in absolute terms with a 7.8% annual growth rate, India is likely to be the true growth champion,” the report stated. “At 10.5% per annum, India is on track to surpass Japan and become the second-largest life insurance market in the region.”
In a strategic move to attract more international investment, India has recently increased its Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%.
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