Solution

According to a report by Swiss Re Institute, India’s insurance sector is projected to record the fastest growth among the G20 countries with the total premium expected to rise at an average rate of 7.1 per cent in real terms during 2024-28. In comparison, the growth rate for the global insurance market will be around 2.4 per cent. In the time period, the life insurance business is expected to record 6.7 per cent growth backed by rising demand for term life cover by the middle-income group and increased adoption of insurtech. Meanwhile, the non-life segment is estimated to grow by 8.3 per cent owing to economic growth, improvement in distribution channels, government support and a favourable regulatory environment with health premiums forecasted to rise by 9.7 per cent. In the time period, the life insurance business is expected to record 6.7 per cent growth backed by rising demand for term life cover by the middle-income group and increased adoption of insurtech. Meanwhile, the non-life segment is estimated to grow by 8.3 per cent owing to economic growth, improvement in distribution channels, government support and a favourable regulatory environment with health premiums forecasted to rise by 9.7 per cent. India’s economic outlook also remains positive with average annual real gross domestic product (GDP) growth estimated to be 6.4 per cent between 2024 and 2028. According to Swiss Re, the overall insurance penetration in 2023-24 is expected to be at 3.8 per cent in India and 6.5 per cent globally. Penetration for life insurance in India for the year is projected to be at 2.9 per cent, and for non-life at 1 per cent.