India to Surpass Japan as Asia’s Second-Largest Life Insurance Market by 2035: Allianz Report

India is on course to become Asia’s second-largest life insurance market by 2035, overtaking Japan, according to the newly released Allianz Global Insurance Report 2025. The report highlights India’s strong growth trajectory, driven by a projected compound annual growth rate (CAGR) of 10.5% in the life insurance segment over the next decade.

With total insurance premiums in India reaching $145 billion in 2024, the country has already demonstrated robust momentum across all insurance categories. Life insurance accounting for nearly 75% of the total market—grew by 10.6% in 2024, significantly up from 7.7% in the previous year. Health insurance, though the smallest segment by size, posted the strongest growth at 20.8%, reflecting rising awareness and demand for healthcare coverage.

Despite these impressive gains, the report notes that insurance penetration in India remains comparatively low, suggesting ample room for further expansion. Allianz identifies this untapped potential as a key reason why India is poised to emerge as the region’s fastest-growing market.

While China is projected to continue its dominance in absolute terms with a life insurance CAGR of 7.8% between 2025 and 2035—India’s faster growth defines India as the real growth champion.