Over the same period, total insurance premiums in India are expected to grow by an average of 14% per annum in nominal local currency, making India the sixth largest in terms of total premium volume by 2032 from the 10th largest in 2021, the report said. .
“Growth will slow slightly to 4.5 per cent in 2022, mainly due to higher inflation. However, the sector is expected to grow closer to a compound annual growth rate (CAGR) of 8 per cent between 2023 and 2032.” Said it. Systematic change in India’s non-life insurance sector brought about by the pandemic is a driving factor behind the growth. This resulted in higher demand for health insurance due to greater risk awareness, making it the largest business (LoB) by premium volume in 2021.
The Indian life insurance industry is expected to grow at an extraordinary rate of 6.6 per cent (actual terms) in 2022 and 7.1% in 2023. At the projected growth rate, life insurance premium in India is set to cross USD 100. Arab for the first time in 2022, it said.
The non-life insurance market has returned to growth of 5.8% (actual terms) in 2021 after a slight contraction in 2020.
Global Economy With inflation on the verge of recession, policymakers are facing an increasingly difficult inflation-growth trade-off. However, it is expected that India will reign as the world’s fastest growing economy in 2022.
Inflation and monetary policy tightening are driving long-term sovereign bond yields higher, with both higher real yields and market pricing in inflation expectations, insurers will, over time, benefit from higher investment returns that enable higher claims. Will help offset. cost.