During the financial year 2024, there was a tremendous increase in both life and general insurance (life and non-life insurance) in India. According to the Economic Survey 2025, India can become the fastest growing insurance market in G20 countries in the coming five years. This increase is mainly due to increasing number of middle class, expansion of digital techniques and favorable government policies.
Light growth in life insurance
The total premium income of India’s Life Insurance Sector in FY 2024 was Rs 8.3 lakh crore, which is 6.1% higher than the previous year (Rs 7.8 lakh crore). Two factors played an important role in this growth:
- Renewal Premium – It contributed 54.4%.
- New Business Premium – 45.5% of the total income came from this segment.
In addition, insurance companies distributed benefits of Rs 5.8 lakh crore. At the same time, Rs 42,284 crore was paid as a death claim.
Bumper growth in non-life insurance
Non-life segment like health and motor insurance also saw a major increase. Net Claim Settlement reached Rs 1.72 lakh crore, which shows that more people are now taking advantage of insurance.
India’s insurance sector: immense possibilities are left
According to a research institution in Switzerland, between 2024 and 2028, India’s insurance sector is expected to increase an annual increase of 11.1%. However, insurance coverage in India is just 3.7%, which is much lower than the global average 7%.
That is, there is still a lot of potential for the insurance sector in India. Insurance companies are now trying to increase their reach in Tier-2 and Tier-3 cities as well as rural areas, so that more and more people can take advantage of it.
