How Reinsurers Can Help Bridge India's Huge Protection Gap

India's insurance industry is growing rapidly, supported by robust economic growth, an expanding middle class, innovation, and strong regulatory support.

- T. A. Ramalingam

According to data from the Swiss Re Institute, total insurance premium collections are projected to grow 7.1% over the next five years (2024-2028). That surpasses the global average of 2.4%, the 5.1% growth in emerging markets, and the 1.7% average in advanced markets. Over the next decade (2024-2034), total premiums, adjusted for inflation, are estimated to more than double, with insurance penetration expected to rise from 3.8% to 4.5%.

Closing the protection gap

India is inherently vulnerable to natural disasters. Its varied topography, which includes mountains, plains, and coastlines, exposes each region to specific natural catastrophe risks.

The average annual economic loss over the 2013-22 decade was $8 billion (inflation-adjusted), 125% higher than the previous 2003-12 decade ($3.8 billion), according to Swiss Re Institute.