India's Insurance Market Poised To Overtake Japan As Asia's 2nd Largest By 2035, Says SEBI RA

The analyst said that India’s insurance market is expected to continue expanding rapidly thanks to economic growth, regulatory reforms, and digital adoption.

The insurance market in India demonstrated substantial growth throughout the last five years, and SEBI-registered analyst Billiondreamz predicts it will continue to expand rapidly going forward.

Over the period from FY2020 to FY2024, life insurance premium values increased from ₹5.73 lakh crore to ₹8.3 lakh crore, reflecting an annual growth rate of 9.7%.

Asset growth for life insurers surpassed 13% between March 2023 and March 2024.

The general insurance sector recorded an 11.3% CAGR growth due to substantial progress in health and motor insurance channels.

The analyst expects India's life insurance market to overtake Japan and become Asia's second-largest market, with an anticipated 10.5% CAGR growth over the next decade.

The general insurance premium income will experience incremental growth from ₹3.21–3.24 lakh crore to ₹3.53–3.61 lakh crore during FY2026 and FY2027.

The main growth drivers consist of India's strong economic growth, which increases household disposable income, combined with regulatory adjustments that enable 100% FDI investment inflows.

Digital adoption broadens customer access, while Pradhan Mantri Fasal Bima Yojana expands rural insurance coverage through government programs.

The leading market entities in life insurance are LIC, HDFC Life, SBI Life, and ICICI Prudential, and in general insurance are ICICI Lombard, Star Health, and NIACL.

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