Market Insights Financial Insurances Non-life insurances

Property Insurance - India

India

The Property Insurance market market in India is expected to witness a significant growth in the coming years.
By 2024, the market size, measured by the gross written premium, is projected to reach INR US$2.98bn.
This indicates a promising potential for the industry in the country.
Furthermore, the average spending per capita in the Property Insurance market market is estimated to be INR US$2.07 in 2024.
This figure highlights the individual's willingness to invest in insurance coverage for their properties, indicating a growing awareness of the importance of protecting assets.
Looking ahead, the market is anticipated to experience a steady annual growth rate (CAGR 2024-2028) of 3.58%.
This consistent growth trajectory is expected to result in a market volume of INR US$3.43bn by 2028, further solidifying the significance of the Property Insurance market sector in India.
In a global comparison, it is noteworthy that the United States is expected to generate the highest gross written premium in 2024, amounting to approximately US$214.7bn.
This indicates the dominance of the United States in terms of market size and reinforces the importance of the Property Insurance market industry on a global scale.
As in India continues to develop and expand its property market, the Property Insurance market segment has a promising future with opportunities for growth and investment.
India's property insurance market is experiencing rapid growth due to increasing urbanization and the rising awareness of the need for protection against natural disasters.

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Analyst Opinion

The property insurance market provides essential coverage for homeowners, businesses, and property owners, safeguarding against various risks and losses. In this diverse sector, distinct trends are shaping the landscape of property insurance, while specific indicators offer insights into its performance and stability.

Trends on the market:

Climate Change Resilience: With the increasing frequency and severity of extreme weather events, property insurers are focusing on climate change resilience, offering coverage and incentives for risk mitigation and disaster preparedness.
Tech-Driven Underwriting: The adoption of data analytics and technology for underwriting and risk assessment is becoming prevalent, enabling more accurate pricing and personalized property insurance policies.
Short-Term Rentals Coverage: As short-term property rentals gain popularity, insurers are developing specialized policies to cover the unique risks associated with hosting platforms like Airbnb.
Green Building Initiatives: Property insurance is adapting to the green building movement, offering incentives and coverage for energy-efficient and sustainable construction practices.
Wildfire and Flood Insurance: Given the increasing risks of wildfires and flooding, insurers are expanding coverage options and risk mitigation programs for these specific perils.

Underlying Indicators:

Catastrophic Event Losses: Tracking losses from catastrophic events, such as wildfires, hurricanes, and floods, is pivotal for assessing the financial health of property insurers. These events can significantly impact claims costs and underwriting.
Property Values and Construction Costs: Fluctuations in property values and construction costs directly influence underwriting and claims payouts, impacting the overall financial stability of property insurers.
Regulatory Compliance: Staying compliant with evolving building codes, environmental regulations, and property-related laws is essential for property insurers to operate within legal boundaries and adapt to changing standards.
Customer Retention and Satisfaction: Monitoring customer retention and satisfaction rates is key in evaluating the competitiveness of property insurance products and the effectiveness of marketing and customer service efforts.
Mitigation Efforts: The adoption of property risk mitigation measures by policyholders, such as fire-resistant landscaping or flood-resistant construction, can influence claims experience and loss ratios, affecting insurers' profitability.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.