INDUSTRY OUTLOOK

Growth Outlook

Gross Written Premiums (GWP) are projected to grow fromINR 9.2 trillion (~US$110 billion) in 2024 to about INR 14.6 trillion(~US$170 billion) by 2029, reflecting an estimated CAGR of ~9.6%.

Another forecast pegs the growth from INR ~9.3 trillion in 2024 to INR ~13.5 trillion (US$216 billion) by 2028, at around 10% CAGR.

Overall, the sector is on track for double-digit growth, outperforming global averages.

Key Growth Drivers

A young and growing working-age population, expanding middle class, and rising disposable incomes are driving demand for financial protection and retirement planning tools.

Rapid digital adoption—including AI, insurtech platforms, e-KYC, and initiatives like the Bima Sugam portal—is enhancing accessibility and customer engagement.

Regulatory reforms, such as increasing foreign investment limits (FDI) to 100%, reducing GST on insurance, and mandating rural coverage (e.g., covering lives in gram panchayats), are expanding reach and affordability.

There's a noticeable shift toward term insurance and pure protection products, especially among younger policyholders favoring low-premium, high-cover options.

Meanwhile, solutions for specific demographics—such as women-centric plans, micro-insurance, and customizable add-ons—are gaining traction.

Despite rising growth, India's life insurance penetration remains low—around 2.7–3.8% of GDP,signaling vast untapped potential in rural and semi-urban areas.

Government schemes (e.g., PMJJBY), microfinance collaborations, and postal distribution are helping to expand outreach.

Recent Momentum & Performance

Premium Growth Acceleration: In July 2025, life insurers’ premium collections surged by 22.4% (₹38,958 crore), indicating strong consumer demand and distribution efficiency.

Robust Start to FY 26: New business premiums climbed 10.8% in April–May 2025, with total collections exceeding ₹52,000 crore.

Summary Outlook

The life insurance sector in India is poised for sustained expansion, supported by:

Strong fundamentals:favorable demographics, economic resilience, and rising financial awareness.

Regulatory & policy tailwinds: digital initiatives, liberalized FDI norms, reduced taxes, and rural mandates.

Product innovation:a pivot toward protection-oriented, flexible, and personalized offerings.

Underpenetrated segments:vast opportunities in rural and underserved markets.

All told, the Indian life insurance industry is emerging as one of the most dynamic insurance markets globally, with high long-term growth potential.

Latest shareholding pattern of Shriram Life Insurance Co. Ltd.