India’s Insurance Sector Hits Record Premium Growth

Over the past decade, India’s insurance sector has undergone a remarkable transformation. Once dominated by traditional agent-led sales, the industry has steadily shifted towards an integrated omnichannel distribution model, combining digital platforms, bank partnerships, and direct channels. According to a recent report by CareEdge Ratings, total insurance premiums surged from USD 45.7 billion (approximately ₹4,150 billion) in fiscal year (FY) 2015 to USD 131.2 billion (around ₹11,930 billion) in FY 2025, reflecting a robust compound annual growth rate (CAGR) of 11.1%.

This dramatic expansion has been driven by rising disposable incomes, growing acceptance of financial products, regulatory reforms, innovative insurance solutions, and rapidly expanding distribution networks. While individual agents continue to play a significant role, the bulk of premium growth over the last decade has been propelled by bancassurance and alternative channels, particularly in the non-life segment. The trend highlights consumers’ increasing preference for convenient, transparent, and digitally enabled purchasing processes.

The Insurance Regulatory and Development Authority of India (IRDAI) has further accelerated this shift through its ‘Bima Sugam’ platform—a unified digital marketplace for both life and non-life insurance products.

In life insurance, agent-led sales remain dominant for long-term savings and protection plans. However, bancassurance has carved a strong position by leveraging banks’ extensive customer bases. Group insurance has also witnessed rapid growth, facilitated by both direct and digital channels.

In the non-life segment, brokers lead commercial and group health insurance distribution, while retail motor and health insurance are increasingly sold through direct and digital channels. Bancassurance, in particular, is focusing on health products, tapping into the growing consumer demand for accessible coverage.

Key Indicators of India’s Insurance Sector (FY 2021–FY 2025)

Commission payouts more than doubled, reflecting growth in non-life premiums. Customer complaints rose slightly, but resolution rates remain exceptionally high.

Looking ahead, CareEdge forecasts India’s insurance market to grow at 8–11% in FY 2026–FY 2027. The sector is expected to further consolidate omnichannel distribution, combining personalised advisory services with supportive digital tools and fully digital platforms. Initiatives like Bima Sugam and broad digitalisation are set to enhance market expansion, operational efficiency, and transparency, reinforcing India’s position as one of the world’s fastest-growing insurance markets.