Insurance Sector

From a macroeconomic perspective, LIC's integrated balance sheet enables counter-cyclical investment, stabilisation of long-term bond markets and long-term infrastructure financing

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

Financial Services Secretary M Nagaraju on Monday highlighted the role of IFSCA in advancing India's aspiration to becoming a global reinsurance hub and encouraged Indian insurers and reinsurers to tap global opportunities through GIFT City. India stands at the cusp of transformative growth in its reinsurance sector, Nagaraju said speaking at the IFSCIRDAIGIFT City Global Reinsurance Summit in Mumbai, according to a finance ministry statement. Insurance and reinsurance were emphasised as crucial in driving India towards its economic objectives, particularly as the country strengthens its role in the global economy, he said. As per a Swiss Re report, India remained the 10th largest insurance market globally by nominal premium volumes in 2024, with a market share of 1.8 per cent. Insurance penetration stood at 3.7 per cent, with life insurance at 2.7 per cent and non-life at 1 per cent, while insurance density increased marginally to USD 97, indicating significant untapped market ...

Swiss Re flags India as the world's fastest-growing major insurance market by the end of the decade

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.

Nageswaran called for mainstream banks to not merely be spectators to the process of formalisation of the economy but to actively absorb new proven borrowers into their core portfolios

In April-December period, premiums are up nearly 14% YoY

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

Claims paid by the insurance industry increased in FY25, led by a rise in life insurance death claims and higher net incurred claims reported by general insurers across segments

The Reserve Bank has flagged structural pressures in the insurance sector, saying premium growth is being increasingly driven by high-cost distribution-led strategies of insurance companies rather than operating efficiency. While posing no near-term systemic risks, the surface-level stability masks emerging structural pressures that could weigh on medium-term sustainability and coverage expansion, RBI said in its latest financial stability report. "A primary pressure is the persistence of a high expense structure, particularly the acquisition costs. Premium growth has been increasingly driven by high-cost distribution-led strategies rather than operating efficiency," the report said. It further said that while in the life insurance sector, frontloaded acquisition costs limited the extent to which scale efficiencies are passed on to policyholders. Furthermore, expected benefits from digitisation remain unrealised. "From a financial stability perspective, continuously elevated expen

Revised rules remove the requirement for majority Indian directors in insurers with foreign investment, but mandate that one of the top leadership roles be held by an Indian resident

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

After a muted FY26 so far, India's insurance industry is expected to return to double-digit growth in FY27, aided by regulatory changes, GST rationalisation and improving demand across segments

CareEdge expects life insurers to sustain 8-11 per cent growth over the next two years, but warns investors not to overread past trends as margins may face near-term pressure from reforms

The Bombay High Court ruled that an insurer cannot reject a claim by delaying the deposit of a valid premium cheque, holding the insurance company liable for deficiency in service

Even as the sector opens up to greater competition and foreign investment, long-standing challenges continue to constrain its reach and credibility

The move is taking the form of a reduction in discount on next year's premium once a policyholder has made a claim

The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, was cleared by the Rajya Sabha with a voice vote, a day after it was passed by the Lok Sabha

Under the proposed Bill, the revised definition of insurance business seeks to allow insurers to enter into non-insurance contracts as well

A bill seeking to raise FDI in the insurance sector to 100 per cent was on Tuesday introduced in the Lok Sabha amid strong protest from the Opposition. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, seeks to amend Insurance Act, 1938, Life Insurance Corporation Act, 1956, and Insurance Regulatory and Development Authority Act, 1999, as per the bill circulated to members of Parliament. Introducing the bill, Union Finance Minister Nirmala Sitharaman said the common people's insurance has always been the focus of Prime Minister Narendra Modi and the central government has provided insurance to the marginal sections of the society even during the Covid pandemic. Sitharaman said objections of some of the Opposition members could be part of the debate and she was ready to answer all their questions during the debate on the proposed legislation. Opposing the introduction of the bill, RSP member N K Premachandran said the nomenclature of the bill has nothing to do wit