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India's Insurance Dip: Premiums Rise, Penetration Falls
1 Jan
Summary
- Life insurance penetration decreased to 2.7% of GDP in FY25.
- Overall insurance penetration remained flat at 3.7% in FY25.
- Total premium income for life insurers grew by 6.73% in FY25.
Life insurance penetration in India has seen a downward trend for the third consecutive year, settling at 2.7% of GDP in FY25. This decline occurs even as the total premium income for the life insurance industry experienced a growth of 6.73%, reaching ₹8.86 lakh crore. Private sector insurers showed stronger growth compared to the public sector Life Insurance Corporation of India.
The broader insurance sector's penetration remained unchanged at 3.7% of GDP in FY25. Non-life insurance, particularly health and motor segments, also saw modest growth, contributing significantly to the overall premium collections. Health insurance continues to be the largest non-life segment, followed by motor insurance.
