By Roxanne Libatique
India’s insurance sector is on course to expand faster than the broader economy over the next 10 years, with the market projected to grow at 10.7% annually against a nominal GDP growth forecast of 10.1%, according to an Allianz Research report published June 3 by CNBC TV18.
For a market that ranks among the 10 largest in the world by premium volume, India’s insurance penetration remains comparatively low. Allianz Research put the figure at 3.8% of GDP – a level that reflects both the scale of unmet demand and the distance the sector has yet to travel. Two specific gaps stand out in the report. First, only around 46% of India’s working-age population is effectively covered by pension systems, leaving a large share of workers without structured retirement protection. Second, a substantial portion of healthcare spending in the country continues to come directly from individuals rather than through insurance or public schemes. Regulatory efforts are also factoring into the outlook. The Insurance Regulatory and Development Authority of India’s (IRDAI) “Insurance for All by 2047” target, alongside a series of recent market reforms, is seen as supporting not just coverage expansion but also sector efficiency and long-term stability.
Read next: HUB’s top broker strategist has a message for everyone still playing it safe
The market posted 9.4% growth in 2025, with aggregate premium income reaching $146 billion, compared with $133 billion the previous year, according to the Allianz Research report published by CNBC TV18 on June 3, 2026. Life insurance continued to dominate the market, representing 74% of total premiums and recording 9.7% growth during the year. Property and casualty insurance expanded at a slower pace of 7.5%. Health insurance led all segments with 10.4% growth, a performance the report linked to sustained medical inflation and shortfalls in public healthcare provision.
Data from within the life insurance segment points to a shift in who is buying coverage and when. Go Digit Life Insurance’s Transparency Report 4.0 for FY 2025-26, as reported by NDTV on May 28, 2026, found that the average age of accident victims filing claims was 33 years, with individuals between 21 and 30 accounting for more than one-third of accident-related cases. The same report showed that Gen Z customers in the 21-to-30 age bracket drove more than 60% growth in base sum assured at Digit Life Insurance during the fiscal year – an indication that younger policyholders are not only entering the market sooner but are also purchasing higher coverage amounts.
Sabyasachi Sarkar, MD and CEO of Go Digit Life Insurance, connected the claims data directly to the case for earlier financial planning. “The average age of accident victims recorded in our internal claims data during FY25-26 stood at just 33 years. This brings to light the growing importance of securing one’s family financially at an earlier point in life,” Sarkar said, as reported by NDTV. Sarkar also noted that product design has a role to play: “For someone considering a term plan at a younger age, opting for optional benefits transforms standard coverage into a comprehensive shield.” The pattern aligns with wider social changes – earlier financial obligations, shifting household structures, and social media-driven awareness around emergency planning – that correspond to the coverage gaps Allianz Research identified as structural demand drivers.
Read next: LIC taps RBI, SEBI as annuity inflows mount
The health segment’s growth performance in 2025 was the strongest across all categories tracked by Allianz Research. Medical cost inflation and limited reach of government health schemes have continued to push consumers toward private health insurance. Travel insurance is showing similar momentum, though from a different set of drivers. Adoption among Indian travellers climbed 22% year-on-year in 2026, according to Policybazaar data cited in a CNBC TV18 report published June 8, 2026, as flight disruptions, geopolitical uncertainty, and health concerns made overseas travel less predictable. Notably, this rise in insurance uptake has not been accompanied by a retreat from travel itself – trip cancellation ratios fell to 6.8% in 2026 from 8.3% the prior year, according to Asego, a travel protection provider. “Travellers are becoming more conscious of the risks associated with international travel and are seeking stronger protection against unforeseen events,” said Dev Karvat, founder and CEO of Asego, as reported by CNBC TV18.
Parikshit Kohli, sales director for travel at Allianz Partners India, pointed to the financial exposure that international trips can carry. “International medical treatment can be extremely expensive. Similarly, flight disruptions and delayed baggage can lead to additional out-of-pocket expenses,” Kohli said. The timing of a policy purchase has also come under greater scrutiny. Buying coverage early in the trip-planning process – ideally at the point of booking – can broaden the scope of protection to include events that occur before departure, such as cancellations triggered by circumstances outside the traveller’s control.
Leave a Reply