India Motor Insurance Market Size

India Motor Insurance Market Analysis

The India Motor Insurance Market size in terms of gross written premiums value is expected to grow from USD 11.96 billion in 2024 to USD 19.48 billion by 2029, at a CAGR of 10.25% during the forecast period (2024-2029).

A growing population of 1.38 billion and the soaring aspirations of India’s populace present the opportunity for motor insurance companies to tap large volumes of prospective consumers. Driven by a pick-up in health and motor insurance segments, the non-life insurance industry has grown by 16% in the current year compared to 11% in the previous year. India's motor insurance market is experiencing rapid growth, driven by a dynamic automotive sector. The country's economy is steadily expanding, resulting in an increase in disposable income and a growing preference for personal transportation. This has enabled India to become the fourth-largest automotive sales market in the world. Government initiatives such as FAME II, PLI Scheme for Semiconductor Manufacturing, and Advanced Chemistry Cell have further contributed to the growth of the automobile sector, which is, in turn, contributing to the insurance market's growth. As a result, India's motor insurance industry has registered a growth in non-life insurance premiums earned. Additionally, the use of Artificial Intelligence (AI), the Internet of Things (IoT), Machine Learning, and Telematics has risen exponentially, allowing companies to digitally transform their businesses and adapt to the changes in customer behavior.

Additionally, the pandemic expedited digital adoption, and most agents felt customers were more willing to use portals/apps post-pandemic. Further, the pandemic increased the insurance penetration rate and triggered awareness of insurance and demand for protection products.