Property Insurance Market Size & Share in India

Posted on: Jun 18, 2025 | 3 mins | Written by: HDFC ERGO Team

Property Insurance Market Size & Share in India

The property insurance market in India has shown good growth, especially in the past decade, driven by growing awareness among the general population, urbanisation, and rising values in real estate.

Increasingly, people and businesses demand protection for their assets; hence, property insurance, such as home insurance in India, building insurance, and home contents insurance, has gained prominence. This blog shall discuss the current market size and share of property insurance in India and the factors responsible for its growth and will provide an outlook for this important sector in the coming times.

Understanding Property Insurance

Property insurance is an umbrella term that covers a vast variety of insurances to protect the interests of individuals and businesses against any monetary loss due to destruction or damage to the property. These properties may entail residential buildings, commercial buildings, or personal possessions. The main types of property insurance are:

Home Insurance

This insurance covers all insured residential properties against certain predefined risks like animal attack, fire, theft, natural calamities, and other unforeseen events. If desired, home insurance policies may protect against the loss of personal property stored in the home as well.

Building Insurance

Building insurance covers the physical structure of the property from damage sustained by fires, floods, earthquakes, etc. This insurance is of utmost importance for the property owner and landlord because it will allow him to protect his investments.

Home Contents Insurance

This insurance covers personal property in the home, including furniture, electronics, and valuables. Home contents insurance is a must for people who want to guard against loss of or damage to their possessions through theft, fire, flood, etc.

Current Market Size and Share of Property Insurance in India

India's property insurance market has witnessed substantial growth; its market size is expected to be around INR 1.5 trillion by 2025. This remarkable growth can be attributed to increasing urbanisation, higher disposable incomes, and growing awareness regarding the importance of insurance to life and property.

Growth drivers

Urbanisation:

A major factor in the rapid evolution of property insurance has been urbanisation. With a population pouring in every day to the Cities in search of better prospects and quality of life, it has opened gates for the real estate boom, enhancing property insurance demand. A large number of people buying homes and commercial properties require home insurance in India, and building insurance is a must!

Rising Disposable Incomes:

As the Indian economy expands, disposable incomes are rising, and increasingly more people will invest in properties and subsequent insurance. As individuals buy valuable properties, they are more likely to consider property insurance as one way of safeguarding their investments.

Awareness and education:

Increased awareness of the benefits of property insurance has been vital to growth in the market. Insurance companies are raising awareness among their customers about home insurance in India, building insurance, and home contents insurance, the results of which are increased take-up.

Government initiatives:

The Indian government has laid down several initiatives to improve insurance penetration in the country. Financial literacy programs and encouraging people to invest their money in insurance products have all led towards the propelling of the growth of property insurance.

Market Share Analysis

Features of India's property insurance market exhibit a combination of public and private players. Major names dominate the market for property insurance, i.e., offering a suite of products meant for the common man's diverse needs.

It has been found in recent reports that India's property insurance market has the following market shares:

Home Insurance in India:

Around 30 per cent of the total attributable property insurance market share corresponds to home insurance policies. This segment is likely to grow when more homeowners come to realise that their homes need to be protected.

Building Insurance:

Building insurance makes up about 25 per cent of the marketing space. This segment is favoured by landlords who own both residential and business properties because it shields them against their losses.

Home Contents Insurance:

Home contents insurance accounts for nearly 20% of the market. As recognition increases among consumers of the worth of their goods, much expansion is likely to happen in this segment.

Commercial Property Insurance:

The last 25% is made up of commercial property insurance, which is the insurance taken up by businesses on their assets.

Factors Affecting the Property Insurance Sector

The property insurance market in India witnesses changes influenced by various trends, which shape the behaviour of the consumer and the property insurance provider.

Digitisation

These days, digitisation has changed the way customers in India prefer buying property insurance. Online websites and mobile applications have facilitated individuals in making comparisons, getting quotes, and buying insurance. Increased competition between insurers is one positive outcome of digital transformation, offering better products and services for consumers.

Personalisation of Policies

Insurance offers customised property insurance policies to meet the particular needs of clients. This phenomenon is observed chiefly in home insurance in India where insurers allow home coverage to adapt according to the homeowner's peculiar desires. Customisation will refine the enhancement of clients' satisfaction and probably encourage more people to venture into property insurance.

Incorporation of Smart Technology

Smart technology is affecting the property insurance market at the moment as more and more homes and buildings embrace it. The presence of smart home devices such as security systems and smoke alarms decreases damage and loss, which will lead to a reduction in the premiums paid by policyholders. Insurance companies have begun to grant discounts for homes outfitted with smart technology to entice consumers towards property investment.

Concentration on Sustainability

With growing environmental concerns, sustainability has emerged as a big issue in the property insurance market. Insurers are slowly coming up with policies on green homes or sustainable building performances. It's also a global trend towards sustainability; therefore, they'll find resonance with environmentally conscious consumers.

Challenges in the Property Insurance Sector

Besides these very encouraging trends, the property insurance markets in India face frequent challenges that seem very critical in determining the future growth of these markets.

Low Insurance Penetration in India

Low insurance penetration can be seen at its appalling worst in India, even by the world's standards. Only a negligible percentage of the population has taken to property insurance policies. This less penetration is due mainly to ignorance and lack of proper understanding of the product called insurance. Continuous education and outreach efforts should be made by insurance companies to create awareness and increase the number of individuals opting for property insurance.

Regulative Problems

The property insurance industry is faced with various regulatory and compliance issues, which make it a challenge for insurers. The regulatory environment is, therefore, difficult to navigate, and insurers must ensure compliance while selling competitive products.

Natural Calamities

Peninsular India is prone to natural calamities such as floods, earthquakes, and cyclones. Such disasters bring extensive losses to insurers as well as their policyholders. Insurers shall develop high-standard risk-assessing models and disaster response strategies to appreciate the impact of such disasters on the property insurance market.

Conclusion

The property insurance market in India has great growth potential due to urbanisation, disposable income, and the increasing awareness of the importance of insurance in recent years. The home insurance in India, building insurance, and home contents insurance segments are all essential to this growth.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales

How is Home Insurance Premium Calculated?

Here are 7 Reasons behind High Home Insurance Quote

Planning to Buy Home Insurance? Here’s How to Compare Quotes From Insurers

Your Family and Home Insurance: How People can Affect Your Premium

Why your home insurance rates or the premium may increase?