Kathmandu. The size of india’s life insurance market is expected to reach $ 170 billion in the next five years.
GlobalData has made this projection about the future of india’s life insurance market. This growth will be achieved by an average annual growth rate of 9.6 percent, according to the global data report.
According to the report, the size of India’s life insurance market reached $ 110.2 billion in 2024. It is expected to be $120.5 billion in 2025, up 9.9 percent from the previous year.
Increasing financial literacy, digital adoption, and increasing demand for term and all life insurance products, especially among young consumers, are driving growth, the report said. Women and disadvantaged communities are also being supported by targeted insurance products and initiatives such as the Government of India-backed Bima Sakhi Yojana.
India’s growing working-age population, rising income levels and increased participation of women in the workforce are further fuelling the demand for long-term savings and safety products.
At present, life insurance coverage in India is only 3.8 percent. Which is much lower than Hong Kong and South Korea. Hong Kong and South Korea have life insurance coverage of 15.4 percent and 7.1 percent, respectively.
New products such as the insurance expansion launched in April 2025 aim to bridge this gap by providing low-cost protection for India’s rural population. Regulatory support is expected to accelerate growth.
Raising the foreign direct investment (FDI) limit from 74 per cent to 100 per cent and reducing GST on life and health insurance from 18 per cent to 12 per cent could improve investor interest.
The Insurance Regulatory and Development Authority of India’s (IRDAI) efforts to achieve global coverage by 2047, including digital platforms such as Insurance Sugam, are expected to streamline access and increase engagement.
Swarup Kumar Sahu, senior insurance analyst at GlobalData, said, “Collaboration with microfinance institutions and postal services will expand rural coverage and boost premium growth. ’
