India Bancassurance Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2026-2035)

India Bancassurance Market Growth

Government support and advances in Insurtech to outline market growth

The surging government support for improving the insurance penetration across the country will boost the India bancassurance market share. In April 2025, the Indian government provided a conditional green light to insurers for expanding their bancassurance networks. The rapid advances in the Insurtech domain are also leading to improved customer experiences in bancassurance. According to industry reports, The Indian insurtech sector witnessed a 12-fold growth in revenue over the last five years, reaching USD 750 million in 2023. Microinsurance offerings are also appealing to the low-income populace of the country.

Key Trends and Recent Developments

India Bancassurance Market Trends

Growth of millennials and Gen Z population to fuel market development

The India bancassurance market is likely to pick pace with the rising digital integration to capture the attention of millennials and the Generation Z individuals. According to industry reports, Gen Z and millennials dominate the insurance advisory space, recording 85% of the total insurance sales.

Bancassurance is also growing popular in India as it helps increase the profitability for banks and insurers besides making insurance protection more accessible to customers. The expanding geriatric population and the emerging need for health and retirement insurance products provided through bancassurance channels will also add positive impetus to the market growth. According to industry reports, India's elderly population comprising people aged 60 years and above is expected to reach 193.4 million by 2031.

India Bancassurance Market Opportunities

Technology advances and focus on cybersecurity to be major growth factors

The increasing adoption of cutting-edge technologies, such as data analytics and artificial intelligence to offer personalised insurance offerings will favour the growth of the India bancassurance industry. In July 2024, ICICI Lombard launched ‘Elevate’, its new health insurance plan equipped with AI technology. This new product offers tailored solutions for unforeseen medical emergencies, diverse healthcare needs, and rising medical costs.

The strong emphasis of banks and insurers on cybersecurity due to the thriving digitalisation and need to protect customer date will also foster the overall market growth. In January 2025, TATA AIG General Insurance Company introduced CyberEdge, its new cyber insurance solution for protecting businesses of all sizes against a vast number of cyber risks.

India Bancassurance Industry Segmentation

India Bancassurance Market Share

Demand for life bancassurance demand to grow due to its multiple offerings

The life bancassurance demand in India is slated to grow as it offers a significant means of money protection. This form of insurance is highly preferred for its dual advantages of savings and security. Further, the prevailing incidences of lifestyle diseases and the escalating medical costs will influence the interest in life bancassurance to help protect against rising health expenses.

The demand for non-life bancassurance is poised to expand due to the benefits of financial protection to an individual for health issues and losses due to damage to an asset. In May 2024, SBI General Insurance entered a strategic bancassurance partnership deal with Indian financial institution Jana Small Finance Bank for facilitating the distribution of non-life insurance products.

Growing Preference for Pure Distributor Model in Bancassurance

According to the India bancassurance industry analysis, the preference for the pure distributor model will gain ground with the rising scope for insurance companies to pay commissions to the bank in the form of management fees. This model helps banks to offer one or more products of the insurance companies.

The growing regulatory support for financial institutions will boost the preference for the financial holding model. The rising importance of financial holding companies for securities underwriting and dealing, insurance agency activities, insurance underwriting, and merchant banking will fuel the India bancassurance market share.

Meanwhile, the growing popularity of joint ventures is attributed to the need to facilitate joint decision-making in India as well as high system integration for infrastructure utilization. In November 2024, the Central Bank of India received approval from the Reserve Bank of India for its proposed entry into life and non-life insurance business via a joint venture with the Generali group.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

India Bancassurance Market Regional Analysis

Growing urban population to drive West India bancassurance market

The demand for bancassurance in West India is influenced by the strong presence of a large number of market players. The proliferating urban population and their rising insurance requirements will favour the regional industry development. In March 2022, Aditya Birla Sun Life Insurance signed a bancassurance partnership with Bharat Co-operative Bank (Mumbai) Ltd. to facilitate a common platform for providing relevant life insurance solutions to the bank’s 5 lakh plus customers.

The growing government push and the expansion of rural banking networks are expected to boost the North India bancassurance market value. The penetration of various insurance providers in this region will add to the market growth. In November 2024, private life insurer Bandhan Life expanded its strategic bancassurance collaboration with Bandhan Bank to mark its entry in northern India.

Further, the surge in the number of private, public and cooperative banks will significantly benefit the North India bancassurance industry. The rapid advances in the healthcare domain are propelling the demand for various health insurance plans. The rising workforce and their stronger interest in insurance offerings, such as Workmen's Compensation Insurance is another prominent factor in the market growth.

Competitive Landscape

Other players in the India bancassurance market report are Central Bank of India, PNB MetLife India Insurance Company Limited, The New India Assurance Co. Ltd., Bank of Maharashtra, and others.