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India’s insurance industry expected to exceed twice its size by 2030: IBAI-McKinsey report

A collaborative report from the Insurance Brokers Association of India (IBAI) and McKinsey & Company indicated that India's insurance sector is expected to grow by 123% by 2030 — rising from ₹11.2 lakh crore in 2024

Deeksha Upadhyay 29 July 2025 15:34

India’s insurance industry expected to exceed twice its size by 2030: IBAI-McKinsey report

India's Insurance Sector

It is among the top sectors witnessing significant growth.

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The rise of the insurance sector can be linked to higher incomes and greater awareness within the field.

India ranks as the fifth largest life insurance market among the world's emerging insurance sectors, expanding at an annual growth rate of 32-34%.

Recently, the sector has faced intense rivalry among its competitors, resulting in new and creative products within the field.

Present Data:

Gross Written Premiums (GWP): ₹11.2 lakh crore in 2024, an increase from ₹7.8 lakh crore in FY2020.

It is expected to attain ₹25 lakh crore in GWP by 2030, marking a 123% rise;

Currently, insurance penetration in India stands at 3.7% of GDP, which is lower than the global average of 6.8%.

Non-life GWP will increase to ₹2.8 lakh crore (almost 3 times its present amount), driven by SMEs and capital-heavy sectors such as textiles, pharmaceuticals, and automotive.

Retail Insurance: By 2030, the retail sector is projected to make up ₹21 lakh crore of the overall GWP.

Over 90% of this is expected to be fueled by the life insurance sector.

Dos niveles clave de clientes:

Top-end (UHNI and HNI): Households possessing personal financial assets exceeding ₹8.5 crore.

Mass market: A large group of neglected consumers.

Main Difficulties

Underinsurance and Coverage Shortfalls: A lot of consumers, particularly in rural regions, do not realize the advantages of insurance.

87% disparity in life insurance coverage across the country;

31% of the population is uninsured.

Half of all vehicles function without required third-party insurance;

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Low Penetration: Insurance penetration stands at 3.7% of GDP, lower than the global average of 6.8%.

Cost and Reliability: Insurance is frequently perceived as costly or untrustworthy; complex terminology discourages customers.

Mis-selling & Fraud: Ongoing problems with inappropriate products and misleading tactics erode confidence.

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