JETRO published a report on September 16, 2025, analyzing factors behind the rapid growth of Indias life insurance market from policy, economic, and technological perspectives based on statistical data.
Dramatic Market Scale Expansion
Indias life insurance premium income reached .59 billion in 2023, representing approximately 2.5-fold growth from .37 billion in 2014. The state-owned Life Insurance Corporation of India (LIC) reached .09 billion (approximately double from 2014), while 25 private life insurance companies totaled .5 billion (approximately quadruple from 2014), with particularly remarkable growth in private insurers. Following private sector participation liberalization in 2000, the market now consists of 26 companies: 1 state-owned and 25 private.
Combined Policy, Economic, and Technological Factors
Three major factors drive rapid market growth. First, policy-wise, IRDAI announced Insurance for All in November 2022, aiming to provide insurance coverage for all citizens by 2047, with foreign direct investment caps gradually raised from 26% in 2000 to 74% in 2021, and 100% in 2025. Second, economically, Indias real GDP growth has remained stable at 6-9% in recent years, with per capita national income increasing approximately 1.6-fold from ,540 in 2014 to ,580 in 2023. Third, technologically, the Digital India initiative from 2014 popularized online enrollment procedures, with insurtech industry revenue reaching million in 2018-2023, approximately 12-fold growth over five years.
Japanese Company Entry and Future Outlook
Major Japanese life insurance companies have actively entered the market, with Dai-ichi Life establishing Star Union Dai-ichi Life in September 2007, and Nippon Life investing in Reliance Life Insurance in October 2011. Furthermore, Dai-ichi Life signed a multi-year contract with French IT giant Capgemini in June 2025 to establish a Global Capability Center (GCC), strengthening digital transformation efforts.
The article emphasizes that Indias life insurance market has achieved rapid growth through combined policy, economic, and technological factors, with projections to become Asias second-largest market after China by 2035, representing an important growth market for Japanese companies.