Insurance Sector

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

The Bill also places a cap on payments made from the surplus towards debentures. Payments, including interest, cannot exceed 50 per cent of the disclosed surplus

Galaxy Health Insurance has launched Galaxy Twin 360 for young adults, combining inpatient cover with outpatient benefits and wellness services to improve renewals and long-term adoption

In a key reform introduced in June 2025, DFS began ranking public sector banks, private sector banks and public sector insurers on the basis of the quality and timeliness of grievance disposal

Policybazaar data shows a structural shift in India's health insurance market, with Tier 2, Tier 3 and rural regions accounting for most new policies in FY26

Nil GST on premiums, favourable base effect key drivers

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