According to Jerome Jean Hegely, Global Chief Economist, Swiss Re, India is set to emerge as the sixth largest market in terms of total premium volume by 2032, overtaking many of its emerging market peers.
The Indian life insurance industry will show resilience and grow at an extraordinary rate of 6.6% (in real terms) in 2022 and 7.1% in 2023. Considering the projected growth rate, life insurance premium in India is set to cross $$. 100 billion for the first time in 2022. However, global life insurance premium growth will be almost flat this year and will grow by 1.9% in real terms in 2023.
non-life insurance market India grew by 5.8% (in real terms) in 2021 after a slight contraction in 2020. Growth is expected to slow slightly to 4.5% in 2022, mainly due to higher inflation.
However, the sector is expected to witness a growth of around 8% CAGR (in real terms) between 2023 and 2032. One of the driving factors for regional growth is the systematic change in India’s non-life insurance sector. Epidemic. This resulted in higher demand for health insurance due to greater risk awareness, making it the largest LoB (Line of Business) by premium volume in 2021.
“Total insurance premiums in India will grow at an average rate of 14% per annum in nominal local currency terms over the next decade, making India the 10th largest in 2021 to the 6th largest in terms of total premium volume by 2032”.
Swiss Re expects inflationary pressures due to the Russia-Ukraine crisis to present significant challenges for both the life and non-life insurance industry in the medium term. The Ukraine conflict worsened the near-term economic outlook. “With the global economy on the verge of an inflationary slowdown, policymakers are facing an increasingly difficult inflation-growth trade-off,” Hegeli said. “The Swiss Re expects India to reign as the world’s fastest growing economy in 2022”.