Insurance Industry

Insurers preparing for IFRS and risk-based capital frameworks are stepping up actuarial hiring, but limited supply, high turnover and rising reporting complexity pose challenges

The Department for Promotion of Industry and Internal Trade (DPIIT) under the Commerce and Industry Ministry has notified 100 per cent foreign direct investment (FDI) in the insurance sector following the enactment of legislation in this regard. The Government of India has reviewed the extant FDO policy on insurance sector and has made the amendments under the Consolidated FDI Policy of 2020, as amended from time to time, the DPIIT said in a notification. As per the Press Note No. 1 (2026 Series), 100 per cent FDI is allowed in the insurance companies under automatic route. In case of Life Insurance Corporation of India, only 20 per cent is permitted through automatic route. In an Indian insurance company having foreign investment, at least one among the chairperson of its board, its managing director and its chief executive officer, shall be resident Indian citizens, it said while specifying other conditions. Parliament passed Sabka Bima Sabki Raksha (amendment of insurance laws)

Life insurers saw commission costs rise in FY25, driven by higher payouts by private players, even as LIC cut agent commissions and insurance penetration slipped

Insurers also seek an increase in threshold for taxing maturity proceeds of high-value policies

The 2025 insurance law amendments removing the FDI cap signal a decisive shift towards capital depth, competition and technology, strengthening India's push for Insurance for All

HDFC ERGO CEO Anuj Tyagi resigns to pursue entrepreneurial plans, with the board starting a structured succession process to ensure leadership continuity

Most analysts highlighted that the insurer's ability to sustain margins despite the loss of GST input tax credit was the key takeaway from the Q3FY26 results.

In 2024-25, insurance density in India showed a modest rise, increasing from $95 in 2023-24 to $97 in 2024-25.

In his new role, he will work closely with insurers, hospitals, regulators and other stakeholders to support sector-wide initiatives

Mis-selling is a significant concern in the insurance sector, and insurers need to conduct a root cause analysis to identify the underlying causes, the regulator Irdai said in its latest annual report. The total number of grievances registered against life insurers has remained almost the same at 1,20,429 in 2024-25 against 1,20,726 in 2023-24, whereas the total number of grievances registered under UFBP (Unfair Business Practices) has increased from 23,335 in 2023-24 to 26,667 in 2024-25, according to the report. Thus, the share of UFBP grievances to total grievances has increased to 22.14 per cent in FY25 compared to 19.33 per cent in the previous fiscal. Mis-selling involves the sale of insurance products to consumers without proper disclosure of terms, conditions or suitability. "To prevent or reduce mis-selling, insurers have been advised to implement strategies, such as assessing product suitability, implementing distribution channel-specific controls and developing a plan to

The share of The New India Assurance Company rose after announcing disclosures regarding GST orders and show-cause notices received.

Currently, 50 per cent of life insurance investment is allocated to government securities and the balance 50 per cent to other alternative investments

he insurance industry saw both positives and negatives from GST reform, with increased affordability driving growth in retail term and health, while ITC changes hit profitability

Policies typically reimburse cancellations for reasons such as medical emergencies, death of an immediate family member, or natural disasters

Irdai has raised concerns over rising complaints, urging insurers to improve grievance redressal systems, standardise classification processes

Industry leaders emphasise the need for dynamic, data-focused models and protection for new infrastructure, like EV charging stations

Regulatory shocks and withdrawal of a tax benefit slowed down growth, nudging firms to focus on affordability, efficiency and chasing more customers

Industry leaders say phased deadlines through 2027 give them time, but the compliance effort will require major process redesign

A new NCPEDP white paper reveals that most persons with disabilities in India remain uninsured, face high rejection rates and encounter discriminatory practices across public and private schemes

These concerns reflect a deeper structural challenge. India's insurance penetration remains low at 3.7 per cent of gross domestic product, roughly half the global average