India’s general insurance market is being pushed towards wider catastrophe-risk transfer—alongside tougher conduct and claims standards—as premiums are forecast to rise to ₹5.4 trillion (US$56.9bn) by 2030, GlobalData said.
The data provider projects general insurance gross written premium to grow at a 10.0% compound annual growth rate from ₹3.6 trillion in 2026, with growth moderating to 5.1% in 2026 after an estimated 8.5% expansion in 2025 before accelerating again from 2027.
One of the more notable shifts flagged by GlobalData is states “institutionalizing risk transfer” through a comprehensive disaster home insurance programme that blends parametric (trigger-based) payouts with indemnity cover of up to ₹1 million for families living below the poverty line, aimed at closing protection gaps for climate-exposed households and reducing reliance on ad-hoc fiscal relief.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, said: “Growth during 2026-30 is expected to be driven by stonger policyholder protection, faster claims settlement, and broader catastrophe-risk coverage.”
Health and motor remain the main growth engine, together accounting for 72.6% of general insurance premiums in 2025.
Personal Accident & Health (PA&H) was the largest line at 40.9% of premiums in 2025, up from 35.7% in 2021, and is expected to grow by 8.8% in 2026, according to GlobalData. Sahoo added: “New product launches with extensive OPD and wellness coverage signal aggressive product innovation aimed at reducing out-of-pocket costs. However, rising grievances and recent regulatory penalties over claims and governance lapses highlight service gaps and the regulator’s resolve to protect policyholders and enforce standards.”
Motor insurance, the second-largest line at 31.7% of 2025 premiums, is also shifting as electric vehicle coverage grows and “usage-based products gained traction,” GlobalData said, while repair-cost inflation and catastrophe repricing by reinsurers put upward pressure on premiums.
Beyond retail lines, property insurance (20.2% of 2025 premiums) is expected to benefit from infrastructure investment that GlobalData estimates will reach US$128.6bn in 2026–27, alongside an expansion push into Tier II and Tier III cities.
