APAC life insurance market buoyed by strong China, India growth

The Asia-Pacific (APAC) life insurance industry is expected to reach $1.9 trillion by 2029 in terms of written premiums spurred on by “robust growth” in China and India over the next five years, according to GlobalData.

The data and analytics firm said a projected compound annual growth rate (CAGR) of 7.3 per cent would see the APAC life insurance industry grow by $400 billion over the next four years from its estimated $1.2 trillion in today. Of the total global life insurance industry written premiums value in 2025 the APAC sector is expected to hold a 32.4 per cent share, strengthened by China and India as the only two developing markets to rank in the top 10 global life insurance markets.

“The life insurance industry’s growth in this region is set to be driven by the emerging silver economy, regulatory reforms, growing high-net-worth individual (HNWI) market, and industry focus on AI platforms. Nevertheless, economic difficulties stemming from US tariff policies are expected to affect this growth,” Manogna Vangari, Insurance Analyst at GlobalData, said.

“China’s life insurance industry is anticipated to grow at a CAGR of 9.3% over 2025–29, increasing from $501.9 billion in 2025 to $717.0 billion in 2029. Distribution channel reforms, lower interest rate environment, and positive developments in the pension line of business are expected to contribute to this growth.”

A combination of regulatory reforms and changes to policy implementation is expected to boost life insurance premiums in China, with the National Financial Regulatory Administration’s new tiered agent system to take on mis-selling and better personalise sales practices expected to come into effect on 1 February next year and stricter regulations imposed across bancassurance, commission rates and fees standardisation. Similarly, the establishment of private pensions in 2024 is expected to drive increased product development and diversify investment options, such as pooled annuities and lifelong payment plans.

The Indian life insurance market is expected to exceed $169 billion alone by 2029 via a CAGR of nine per cent over the next four years, also pushed forward by regulatory reforms – including raising the foreign direct investment (FDI) limit to 100 per cent and cutting GST on life insurance to zero per cent – and increased take-up of microinsurance in the effort to bridge the “protection gap” created by the state-run, all-in-one Bima Vistaar insurance product.

GlobalData’s figures also confirmed Japan and South Korea are at the front of the “silver economy” macroeconomic trend, with over 20 per cent of their populations aged 65 years or more; by 2030, this cohort is expected to reach 32.3 per cent in Japan and 30.8 per cent in South Korea.

“Mature life insurance markets in South Korea, Hong Kong (China SAR), Japan, and Taiwan (Province of China) are experiencing a demographic shift towards senior-focused products,” Vangari said.

“Insurers are focusing on developing indexed universal life policies, legacy planning solutions, and trust-based payouts to cater to the HNWI market segment. This segment is projected to grow, with the HNWI population in China expected to increase from 4.8 million in 2025 to 5.9 million by 2029, at a CAGR of 5.5%, as per GlobalData’s Total HNW Wealth Analytics.”

“Insurers who can incorporate AI throughout their operations and develop products tailored to the needs of the aging population and HNWI segment will be in the best position to seize market opportunities despite economic challenges.”