The Indian insurance market achieved strong growth of +9.4% in 2025, with total premium income reaching $146bn as compared to $133bn in 2024 ), according to Allianz Global Insurance Report 2025.
The report published by Allianz Research, the economic research unit of Allianz reveals that life insurance accounted for 74% of total premium income and it registered a growth of 9.7%, while Property and Casualty (P&C) insurance grew by 7.5%.
Indian health insurance line of business remained the fastest-growing segment, with premiums rising by 10.4% amid persistently high medical inflation and continued gaps in public healthcare coverage.
The report also points out that despite ranking among the world’s ten largest insurance markets, India remains significantly underinsured, with insurance penetration of 3.8% of GDP. With only around 46% of the working-age population effectively covered by pension systems and healthcare expenditure still largely funded out-of-pocket.
Allianz Research, however, expects the insurance market to grow by 10.7% annually over the next decade, ahead of nominal GDP growth of 10.1%. Demographic change, rising life expectancy and gaps in social protection remain key growth drivers. Regulatory initiatives such as IRDAI’s “Insurance for All by 2047” vision and recent market reforms are expected to further support the growth, efficiency and long-term stability of the sector.
Allianz Services in India Country Head Ritu Arora said, “India's strong growth trajectory reflects rising awareness of protection needs across life, health and general insurance, but it also highlights the significant opportunity that remains.
“As the industry continues to evolve, the focus will be on expanding access, improving affordability and ensuring that protection reaches more individuals and families, supporting both financial security and sustainable economic growth."