India's insurance premium growth is set to speed up to 6.9 percent between 2026 and 2030, surpassing that of China, the US, and Western European markets, driven by robust economic fundamentals, increasing demand, and regulatory reforms, global reinsurer Swiss Re stated on Monday.

According to a Swiss Re analysis, the Indian insurance industry is entering a new phase of solid mid-term expansion and will become the fastest-growing large insurance market.

Over the next five years, India is projected to continue being the fastest-growing major economy globally, with an anticipated average real GDP growth of 6.5 percent driven by strong private consumption.

The report indicates that fiscal stimulus initiatives, including the simplification of Goods and Services Tax (GST) rates and concessions on personal income tax, will boost demand from households with lower and middle incomes.

Swiss Re predicts that India's insurance market will expand at an annual growth rate of 6.9 percent in real terms from 2026 to 2030, surpassing other significant emerging and developed insurance markets. The Chinese market is projected to increase by approximately 4 percent, while the US is anticipated to rise by 2 percent during the same timeframe.

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This marks a significant recovery from the slower growth of just 3.1 percent in 2025, as the Indian insurance sector adapted to fresh regulations.

Changes implemented by the Insurance Regulatory and Development Authority of India (IRDAI) along with wider governmental policy adjustments are enhancing transparency and transforming the industry framework for the upcoming phase of rapid expansion.

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Crucial actions comprise an increased foreign direct investment (FDI) cap in the insurance industry, updates to distribution methods, and reforms to the goods and services tax (GST). These modifications can attract new investment, increase access to insurance, and stimulate the demand for insurance.

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In the realm of life insurance, India ranks as the second-largest market among emerging economies, with an anticipated annual growth of 6.8 percent over the next five years, driven by expanding distribution networks, rising demand for retirement products, and credit expansion.