Allianz Global Insurance Report 2026
India emerges as the fastest-growing major Insurance market
The Indian insurance market achieved strong growth of +9.4% in 2025, with total premium income reaching USD146bn (2024: USD133bn). Life insurance, which accounted for 74% of total premium income, expanded by +9.7%, while Property and Casualty (P&C) insurance grew by +7.5%. Health insurance remained the fastest-growing segment, with premiums rising by +10.4% amid persistently high medical inflation and continued gaps in public healthcare coverage.
Despite ranking among the world’s ten largest insurance markets, India remains significantly underinsured, with insurance penetration of 3.8% of GDP. With only around 46% of the working-age population effectively covered by pension systems and healthcare expenditure still largely funded out-of-pocket, Allianz Research expects the insurance market to grow by +10.7% annually over the next decade, ahead of nominal GDP growth of +10.1%. Demographic change, rising life expectancy and gaps in social protection remain key growth drivers. Regulatory initiatives such as IRDAI’s “Insurance for All by 2047” vision and recent market reforms are expected to further support the growth, efficiency and long-term stability of the sector.
Asia is expected to remain the primary engine of global insurance growth over the coming decade, with India emerging as the fastest-growing major insurance market and a standout long-term opportunity. Asia remains the world’s largest life insurance market, with life premiums rising by +9.9% in 2025.
"Insurance is becoming increasingly fundamental to economic resilience in a world marked by greater uncertainty and fragmentation,” said Ritu Arora, Country Head, Allianz Services in India. “India's strong growth trajectory reflects rising awareness of protection needs across life, health and general insurance, but it also highlights the significant opportunity that remains. As the industry continues to evolve, the focus will be on expanding access, improving affordability and ensuring that protection reaches more individuals and families, supporting both financial security and sustainable economic growth."
Overall, the global insurance market is expected to grow at an annual rate of +5.3% over the next ten years, slightly above economic output. For P&C, Allianz expects global annual growth of +4.7% up to 2036 (India: +10.2%). The segment will show solid growth rates in almost all markets, as the increasing need for protection is a global phenomenon. Allianz remains confident about life insurance, which can expect annual growth of +4.9% thanks to higher interest rates (India: +10.5%). The smallest segment, health insurance, should remain the most dynamic, with annual growth of +6.7% (India: +12.5%) in the next ten years.
