During the financial year 2024, there was a tremendous increase in both life and non-life insurance in India. According to the Economic Survey 2025, India can become the fastest growing insurance market in G20 countries in the next 5 years. It has been said in the survey that the premium income of the Life Insurance Industry in FY 2024 stood at Rs 8.3 lakh crore and saw a growth of 6.1 % on an annual basis. The figure was Rs 7.8 lakh crore in FY 2023. Both renewal premium and new business played an important role in growth. Renewable premium was 54.4 % in this income. The remaining 45.5 % share was of the new business.
During this period, Life Insurance Companies gave benefits of Rs 5.8 lakh crore, while Rs 42,284 crore was given as a death claim. The survey said that during the financial year 2024, the Net Claim was Rs 1.72 lakh crore in the non-life segment, especially in the health and motor insurance segment.
An organization in Switzerland had estimated 11.1 % growth in the country’s insurance sector during 2024 to 2028. According to the institution, growth will gain momentum due to increasing number of middle class, technological advancement and favorable regulatory environment. The Economic Survey 2025 states that despite these achievements, the insurance sector in India is only 3.7 %, which is much lower than the global average 7 %. This is to say that there is still good possibilities in India’s insurance market. Insurance companies are now trying to reach the markets where the issue of insurance is quite low, such as Tier-2 and Tier-3 cities and rural areas.