New Delhi [India], May 28 (ANI): Life insurance market in India will grow at 10.5 per cent against a global average of 5 per cent over the next ten years, according to a report by Allianze Global Insurance.

The anticipation for the growth of life insurance in India is due to the growing economic activity in the Indian economy and the policies of the government to promote insurance.

The report stated that most of the growth will be in the life segment, adding that more than half of the additional premium pool will be generated in Asia, with China leading, followed by North America and Europe, but India is likely to grow at a much faster rate.

'While China (+7.8% p.a.) will continue to dominate the region in absolute terms, the real growth champion over the next decade is likely to be India (+10.5% p.a.). As a result, the Indian life insurance market will overtake Japan to become the second largest in the region,' the report added.

To take advantage of the global insurance growth, India has raised the Foreign Direct Investment (FDI) limit to 100 per cent from the previously allowed limit of 74 per cent.

Government infused Rs. 17,450 crore into PSGICs between 2019-20 and 2021-22 to support reforms, improve efficiency, and drive profitability.

In the previous fiscal year, Indian Public Sector General Insurance Companies (PSGICs) witnessed a major turnaround, with all of them having become profitable again after historical losses.

The report adds that Asia and China will remain the growth engines for the global life insurance business as pension systems continue to be developed against the backdrop of accelerating demographic change.

The Property and Casualty (P&C) Insurance segment in the global insurance sector will grow by 4.5 per cent per year until 2035. The P&C segment will post solid growth rates in almost all markets as the need for more protection is a global phenomenon.

The report adds that benefiting from higher interest rates, life insurance sector may grow at a CAGR of about 5.0 per cent over the next decade. The global growth will boost the demand in developed markets such as West and North America.

The Government of India has been committed to creating strong and competitive Public Sector General Insurance Companies and introduced reforms, including regular key performance indicator-based monitoring. (ANI)