Life insurance demand across Asia is expected to grow faster than the global average in 2026, with India and China emerging as the region's strongest growth markets, according to the latest report by the Swiss Re Institute.

The report projects global insurance premiums to grow by 1.3% in real terms during 2026. However, Asia's largest economies are expected to significantly outperform that average.

Among the world's 20 largest insurance markets, India is forecast to record the fastest overall premium growth, with total insurance premiums expected to increase by 7.1%. India's life insurance premiums are projected to rise by around 7%, supported by favorable tax policies and regulatory reforms. Continued growth in health insurance and motor insurance is also expected to strengthen the country's non-life insurance market.

Meanwhile, China's life insurance market is forecast to expand by approximately 6% in 2026. Demand for savings-oriented insurance products is expected to remain strong as maturing deposits are reinvested into insurance products.

China's non-life insurance market, however, is expected to slow, with growth easing to 2.9%, reflecting weaker economic activity and softer consumer confidence, particularly in personal insurance lines such as motor insurance.

The report also expects life insurance growth in developed Asia-Pacific markets to moderate from 8.4% in 2025 to 2.5% in 2026. Japan is projected to record only 0.3% growth due to its aging and shrinking population, while Australia's life insurance market is expected to grow by 0.7%, constrained by inflation despite higher household incomes and immigration.

On the non-life side, property insurance is expected to benefit from reconstruction following natural disasters, while rising repair costs are likely to keep motor insurance premiums elevated in markets such as South Korea.

Swiss Re also highlighted that increasing investment in artificial intelligence (AI), semiconductor manufacturing, and data centers is driving demand for property, engineering, liability, cyber, and business interruption insurance across Asia. In addition, higher interest rates are expected to support investment income for life insurers, although energy price volatility and supply chain disruptions may continue to increase claim costs in several regional markets