Policy changes create room for foreign insurers to explore: Sompo MD

India's non-life insurance sector is set for faster growth as the Insurance Amendment Bill allows 100% FDI, boosts investor confidence and strengthens regulation, says Mathur, Universal Sompo CEO

Recent changes in the Insurance Amendment Bill allowing 100 per cent foreign direct investment (FDI) in the sector and additional powers to the regulator are expected to boost foreign investor confidence and bring the sector closer to global best practices, Sharad Mathur, managing director (MD) & chief executive officer (CEO), Universal Sompo General Insurance, told Aathira Varier in an interview in Mumbai. Edited excerpts:

 

How has the year been so far for the non-life insurance segment? 

The non-life insurance segment is seeing healthy growth momentum, with November being particularly encouraging. Goods and services tax (GST) rationalisation has led to a sustained uptick in health insurance, which remains the fastest-growing segment. Motor insurance offers the next big opportunity, as the regulator and industry work with state governments to bring uninsured vehicles under coverage. Strong automobile sales during the festival season further support this outlook. 

Is the industry or regulator taking any concrete steps to tap into uninsured vehicles? 

Yes. The key challenge is the lack of contactable and reliable data on uninsured vehicles. Insurers are working closely with state governments. The regulator is providing proper guidance. As vehicle databases become more integrated, insurers will be able to directly reach uninsured vehicle owners, starting with mandatory third-party cover and then upselling own-damage protection. 

Do you expect the post GST 2.0 momentum to continue through the year? 

Growth so far is around 8 per cent, and we expect it to move into double digits by March. January should see a pick up, driven by new vehicle sales and renewals, while the January-March period is traditionally strong for health and life insurance due to tax-related demand. With health and motor insurance being the largest contributors to gross written premium (GWP), growth momentum should sustain through March. This would be especially true if the uninsured vehicle initiative gains traction. 

How is the industry gearing up for changes in the Insurance Amendment Bill, especially regulatory empowerment? 

The Bill is a very positive step as it gives the regulator greater flexibility and brings India closer to global best practices. This is not just about increasing power but enabling more effective supervision. Well-governed insurers will not be impacted. Provisions such as disgorgement are meant to address issues like claim mismanagement in a corrective, not punitive, manner. The focus is on improving governance and preventing recurrence through structural changes.  

Do you expect foreign shareholders to increase their stake now that 100 per cent FDI is allowed? 

Foreign insurers, who are committed to India, are likely to increase investment. India is a very attractive and high-growth market with long-term potential. The recent policy changes create an even more conducive environment for foreign insurers to explore opportunities and strengthen their presence. 

India, with its population, infrastructure growth, and long-term vision towards 2047, offers sustained opportunity. Foreign insurers like Sompo and several others will naturally assess the evolving landscape and decide on the best ways to participate in India’s growth story. 

What are your expectations on growth of the company? Which areas are you targeting? 

Last financial year, we closed at ₹5,000 crore, and expect to reach ₹6,000 crore in FY26. In FY19-FY20, the company's premium was stuck at around ₹2,500 crore, with crop as the single largest contributor, once peaking at 70 per cent of the total premiums. Over the past five years, we diversified from a crop-heavy insurer to become a multi-channel and multi-line insurer. Crop now contributes only 8 per cent while motor and health account for 45 per cent and 35 per cent, respectively, and remaining from commercial lines. We aim for ₹9,000 crore in premiums by FY28. We also eye becoming a $1 billion company. While motor and health will continue to grow, our sharp focus is on expanding our commercial lines book significantly, which we grew from ₹100 crore to ₹500 crore in five years. We are also working on emerging areas like cyber, surety, parametric and cover for pets. 

Are you planning to expand to new locations like GIFT City? 

We do not have an office in GIFT City now, but it’s an option we may consider in the future.