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Insurance is a very important segment of India’s financial system. It helps to reduce the risk of life, health, and wealth of people. Insurance provides financial protection in cases like sudden accidents, illnesses, or natural calamities.
The insurance sector in India has developed rapidly in the few years. There are many new companies and products, and awareness has increased. The IRDAI organization helps with this development. It regulates the insurance industry, maintains transparency, and protects the customer’s interest. These highlight the performance of the industry by publishing regular reports and data. Great time ahead for business enthusiasts looking for an insurance broker license in India.
This blog speculates on the data of the insurance industry from FY2013-14 to FY2024-25 and market projections for growth by 2030. Also, it provides a brief on the growth of the industry, the expansion of premium business, cost and claim trends, financial strength, and changes in customer complaints. Get current highlights on the growth prospects for the insurance industry in India.
The insurance industry in India operates through a well-organized structure. There are different types of insurance companies operating, and each has a different role. This industry provides financial security and maintains the financial stability of the country.
The insurance industry in India is divided into four segments.
Life insurance provides financial protection for people’s lives. Money is paid on the death of the policyholder or on completion of a specific period. It is important for long-term savings.
Assets like cars, houses, travel, and businesses are insured. It provides financial assistance for accidents or losses.
Health insurance helps with medical expenses. It is very important in the case of hospitalization, surgery, or serious illness.
Reinsurance companies share the risks of other insurance companies. Insurance companies are financially protected from major losses.
Get expert assistance on Indian insurance industry regulations, IRDAI compliance, and market expansion strategy aligned with evolving growth trends and future outlook.
There are different types of companies operating in the insurance industry in India.
These government-run companies have been operating in the market for a long time. They have built credibility among common people.
Private companies have introduced new products and services using modern technology. This has increased competition in the market.
Foreign companies have come to the Indian market and brought international experience and large capital.
Brokers, agents, and TPAs create a connection between the customer and the insurance company. They help in selling policies and processing claims.
IRDAI is the regulatory body for the insurance industry in India. It licenses insurance companies and supervises their activities. The organization makes various rules to ensure the protection of customers.
IRDAI also manages the grievance redressal system. It also encourages the use of new products and technology. So, insurance services have become easier and more modern.
India’s insurance sector is entering a high growth phase, and premium growth projections are expected. By 2030, the insurance market of India is expected to increase at an average annual rate of 6.9% between 2026-30. Total Gross Written Premiums are projected to grow 123% by 2030, backed by digital transformation, regulatory push, and expanding financial inclusion.
Growing key segments include health insurance projected to grow by 7.2% annually, and motor insurance nearly 7.5% annually. Increasing insurance penetration in semi-urban and rural markets, coupled with InsurTech adoption and private sector participation, will strengthen the sector’s long-term market potential.
The last few years have witnessed a clear infrastructure development in the Indian insurance industry. The sector has been strengthened by new companies, offices, and digital services.
The table below shows the growth in the number of insurance companies over the years.
The number of insurance companies has increased during this period. Health insurance companies and new reinsurance companies have entered the market. Competition has increased, and customers are getting better services with the entry of new companies. However, the number of companies has stabilized after 2018 as a sign of market maturity.
The number of foreign reinsurers in the Indian insurance industry has increased.
Foreign companies have brought in international experience and large capital. This has made it easier to share large risks. These companies provide support in natural disasters or large financial losses. So, the financial strength of the entire industry has increased.
The number of insurance offices in India increased rapidly for a while.
The number of offices was at its highest in 2018 to 19. The number decreased due to the growth in digital services. Now, many customers are buying policies and submitting claims online. The use of insurance aggregators and mobile apps has also increased.
Digital transformation has made services faster and the process easier for customers. This digital trend is expected to increase in the future.
Insurance Penetration and Insurance Density are two important indicators for understanding the development of the insurance industry. These indicators show how many people in the country are using insurance and how much financial participation in the insurance sector is increasing.
The table below shows the change in Insurance Penetration over the last 10 years.
During this period, the insurance penetration was usually between 3.3% and 4.2%. It reached its highest level during the Covid pandemic. People started understanding the importance of health and life insurance more.
India’s insurance penetration is still low compared to developed countries of the world. However, it is increasing gradually. Increasing insurance penetration indicates India’s financial inclusion and growing interest in risk protection.
The table below shows an increase in insurance density provided in US $ unit.
The average insurance expenditure per person has increased during this period. This change has been due to the increase in the income of people and increasing financial awareness. In addition, insurance products are easily available through digital platforms. Online services have made buying and managing insurance easier. This trend creates the possibility of expansion of the insurance industry in the future.
Navigate the evolving Indian insurance industry landscape with expert guidance on IRDAI regulations, compliance management, market expansion strategy, and future growth outlook.
The Indian insurance industry has witnessed significant growth in business over the last 10 years. New policy sales have increased, and gross premium income has increased manifold. This reflects that people are now more aware of the importance of insurance.
The table below shows the growth in new policy issuance:
The number of new policies has more than doubled during this period. Demand has increased health insurance, life insurance, and microinsurance. Insurance uptake is also increasing in rural and semi-urban areas. Government awareness programs and digital platforms have helped with this growth.
The table given below highlights the total premium income growth (₹ Lakh Crore).
The total premium income has increased over the years. This indicates long-term stable growth. The economic development of the country, the increase in people’s income, and new regulatory reforms have strengthened this growth. The diversity of insurance products has also attracted customers.
The table provides data for Market Share of PSUs (including Specialized):
The market share of government companies has decreased slightly. The share of private companies has increased. Private companies are using new products, faster services, and advanced technology. So, competition in the market has increased, and customers are getting better services.
Operating expenses have also increased with the growth of the insurance industry. This expenditure has increased to attract new customers, improve technology, and expand services.
The table given below highlights an increase in commission expenses for the last 10 years from 2013 to 2023.
Insurance companies sell policies through agents, brokers, and other intermediaries. Due to this network growth, commission expenses have also increased. It has become easier to reach customers with the addition of new agents.
Note: The commission expense for 2023-24 is ₹91,124.61 Crore and for 2024-25 is ₹108,065.91 crore.
The given table provides data on analysis for operating expenses for the last 10 years (2013 to 2023) in India.
Operating expenses have increased significantly. Companies have invested in online platforms, mobile apps, and data systems. In addition, marketing expenses and regulatory compliance costs have also increased.
The table given below highlights the claims and benefits for life insurers and non-life insurers.
The number of claims and benefits paid has increased during this period. Especially during the Covid pandemic, health and life insurance claims increased rapidly. Rising medical expenses and natural calamities are also major reasons for the increase in claims.
Speedy settlement of claims increases the credibility of the insurance company. When customers get money on time, they have more confidence in their insurance. So, people’s trust in the industry has strengthened.
Some important indicators are analyzed to understand the financial strength of the insurance industry. These help in understanding the stability and future capabilities of the industry.
The table highlights assets’ growth in AUM (including Reinsurers & FRBs) as on March 31 for the last 10 years:
The amount of assets under management of insurance companies has increased significantly. This investment is used in the capital market and various infrastructure projects. So, the insurance industry plays an important role in the economic development of the country.
Here is table for after-tax-profit as on 31st March for given years:
The amount of profit was not the same in all the years. Profits have increased or decreased due to market fluctuations and an increase in claims. However, profits increased in 2023-25, which indicates the financial strength of the industry.
The table highlights the growth in paid-up capital including reinsurers.
Insurance companies have become stronger due to the increase in paid-up capital. This capital plays an important role in complying with the solvency norms of the regulatory body.
The investment of foreign reinsurers has increased rapidly since 2016-17. This is evidence of the increasing confidence of international investors. The inflow of foreign capital has improved risk management and increased the stability of the industry.
The customer grievance redressal system in the Indian insurance industry has improved in the last 10 years. Quick resolution of issues plays a vital role in increasing customer confidence.
The table below shows the grievance resolution rate.
The grievance resolution rate is above 98% every year, except for FY2014-15, and gradually decreased 95.89% for FY2024-25, too.
The total number of grievances has also decreased slightly over time. Insurance companies have now introduced improved customer service systems. Online grievance platforms and quick response mechanisms have helped improve this.
The table provides the number of complaints reported with the Ombudsman at different centers.
The number of complaints to the Ombudsman has increased since FY2021-22 and observed a peak for FY2024-25. However, the complaint disposal rate has also improved a lot. This shows that the dispute resolution mechanism has become stronger now.
Customer protection is very important for the insurance industry. A transparent regulatory system increases customer confidence. IRDAI is playing a key role and ensuring accountability in the industry.
Many new opportunities are emerging in the future in the Indian insurance market. The demand for health insurance, motor insurance, crop insurance, and mobile insurance is increasing rapidly. The importance of health insurance has increased due to increasing health awareness.
The use of insurance in rural areas is gradually increasing. The government and private companies are introducing new products in this area. Insurance services are being improved using IoT technology and data analytics.
InsurTech startups and online aggregator platforms are making the market easier and more customer friendly. There is also an increasing opportunity for foreign investors and joint ventures. So, the industry is likely to expand further in the future.
While the Indian insurance industry is growing rapidly, some major challenges remain:
The Indian insurance industry is likely to grow even bigger in the coming years. Economic development and population growth will strengthen the industry.
The total premium income and market size will increase in the future. The use of technology and digital platforms will increase. Online policy sales and claim processing will become easier.
Future trends are likely to be:
Have a look at the licenses and registrations for evolving Insurance industry-
The insurance industry in India has changed in the last 10 years. Policy sales, premium income, and asset size have all seen strong growth. Financial stability and operational efficiency have also improved.
The industry has created many opportunities for new businesses, investments, and partnerships. However, regulatory compliance and proper planning are very important. Companies can succeed in the market if they adopt the right strategy, which is only possible with the assistance of Enterslice experts.
Enterslice provides complete advisory and compliance support to businesses, investors, and organizations looking to enter the insurance industry. We can provide experienced assistance in licensing, regulatory approvals, and business strategy development. Our professional guidance will guide your business on a successful path.
The Indian insurance market has grown rapidly in the last 10 years. The number of new policies and total premium income has increased. Rising income, awareness, and government initiatives have helped in this growth. Digital platforms have made it easier to get insurance, and the demand for health and life insurance has increased.
Insurance penetration is an important indicator. It shows the size of the insurance industry compared to the total economy of the country. It is usually calculated as a percentage of GDP. High penetration indicates that many people are using insurance. This rate is increasing in India. It is a good sign of market development.
Insurance Density shows how much money an average person spends on insurance in a year. It is usually calculated in US dollars. If the density increases, it means more people are interested in insurance. This indicates the improvement in the country's financial awareness and security planning. This index has been increasing in India over the past 10 years.
The market share of government insurance companies has decreased as the number of private companies and competition has increased. Private companies are offering new products and faster services. They are using technology to enhance customer benefits. So, customers are getting more options. However, government companies still play an important role in the market.
Private insurance companies have introduced new technology and modern services. They have improved online policies, faster claim processes, and customer support. Many new insurance products have come into the market. So, competition has increased, and customers are getting better service. The market is becoming more customer centric.
There are several reasons for the increase in claim volume. Rising healthcare costs are a major reason. Many health and life insurance claims were filed during the Covid pandemic. Apart from this, an increasing number of natural disasters and accidents are also increasing in claims. However, increasing claim payout rates are boosting customer confidence.
Foreign reinsurers help share the risks of insurance companies. They provide financial support in case of large losses. This keeps the insurance companies stable. Foreign investment brings new technology and expertise to the industry. This helps in strengthening the entire insurance industry.
The financial strength of the insurance industry in India has increased a lot in the last 10 years. The assets under management and capital of the companies have increased. Premium income and investments are also increasing. Although the profit margin has fluctuated in some years, the industry as a whole is stable. This creates a good opportunity for long-term investment.
The grievance redressal rate in the insurance industry in India is very good. Most of the grievances are resolved quickly. Online grievance redressal and ombudsman services help the customers. IRDAI regularly monitors this process. Prompt grievance redressal plays an important role in increasing the trust of the customers.
The future of the insurance market in India is very promising. The demand for health, pension, and rural insurance will increase. Using technology, insurance services will become easier. Insure Tech companies and digital platforms will improve the market. The industry will grow even bigger in the coming years due to economic development and population growth.
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