Average annual spending was only $97.7 per person in 2025.
India is expected to become the world’s fastest-growing major insurance market over the next decade, with total premiums rising by about 10.7% a year.
India was already among the world’s 10 largest insurance markets in 2025, with gross written premiums of $142.5b (€124b), according to the Allianz Global Insurance Report 2026.
However, insurance penetration remained at 3.8% of gross domestic product, compared with 4.4% in China and 5.1% in Thailand.
Average insurance spending in India was about $97.7 (€85) per person in 2025. This was below $605.7 (€527) in China and $420.7 (€366) in Thailand, indicating that a large share of the Indian population remains underinsured.
Life insurance accounted for 74% of India’s total premiums in 2024. Non-life insurance, including personal accident and travel cover, made up 16%, whilst health insurance accounted for 10%.
Allianz expects life insurance premiums in India to grow by an average of 10.5% a year between 2026 and 2036. Non-life premiums are forecast to rise by 10.2% annually, whilst health insurance is expected to record the fastest growth at 12.5%.
By 2036, India’s life insurance premium income is projected to reach $318.4b (€277b).
Non-life premiums are expected to reach $65.9b (€57.3b), whilst health premiums could rise to $52.0b (€45.2b).
Motor insurance remains the largest part of the non-life market, accounting for 52% of non-health general insurance premiums in the 2024 to 2025 financial year.
Third-party liability cover is compulsory, but more than half of vehicles on Indian roads are estimated to be uninsured.
Crop insurance accounted for 16% of general insurance premiums, reflecting the importance of agriculture to the economy.
Insurance business is also concentrated in a small number of states. Gujarat, Karnataka, Maharashtra, Rajasthan and Uttar Pradesh generated 48% of general insurance premiums, with Maharashtra alone accounting for 20%.
In health insurance, Karnataka, Maharashtra and Tamil Nadu contributed 49.2% of premium income in 2023 to 2024. Maharashtra accounted for 22.5%.
The report said gaps in India’s social protection system were likely to support demand for private insurance.
About 64.3% of the population was covered by at least one branch of social security, whilst pension coverage reached 45.8% of the working-age population.
Only about 12% of India’s workforce is employed in the formal sector and receives standard pension coverage. Out-of-pocket payments also accounted for 43.9% of total healthcare spending.
Allianz said rising incomes, a growing middle class, regulatory changes and the Insurance Regulatory and Development Authority of India’s “Insurance for All by 2047” programme were expected to support further market growth.
($1.00 = €0.87)