India stands out as a high-growth market within Asia, attracting strong interest from both domestic and international insurers. The country continues to enjoy a soft market cycle, and non-catastrophe-exposed portfolios are seeing rate decreases of up to 40%, reflecting high competition among insurers. There is also a strong and growing appetite for construction risk, driven by India's ambitious infrastructure projects. Both domestic and global players are actively underwriting risks across segments, according to a report by Aon.
The government’s focus on urban infrastructure development along with real estate expansion are the major drivers of the construction industry. On the other hand, technology-driven construction projects, like data centres and battery plants, are also driving growth in the construction sector. The Indian government’s mega initiatives like the Smart Cities mission and national infrastructure pipeline are also creating huge opportunities.
While India does face periodic natural disaster exposure, most growth is concentrated in non-catastrophe-prone regions, making underwriting more favorable. Real estate and high-tech industrial projects are key drivers of insurance demand. Construction of data centres and advanced industrial facilities is attracting heightened insurer interest.
