Insurance Sector

Life insurers' new business premium rose 20.7% in July, led by strong growth in LIC's group business and steady expansion by private insurers

S&P Global Ratings says reforms and low insurance penetration support long-term growth, but underwriting pressures and weak profitability remain key risks for insurers

India's insurance sector is poised for 'massive' long-term growth, supported by structural reforms, low insurance penetration, and a favourable regulatory environment, but macroeconomic headwinds and profitability pressures remain key risks, S&P Global Ratings said on Thursday. In a report titled 'India Insurance Sector Trends', S&P said favourable regulatory reforms are attracting foreign capital and accelerating M&A activity in the sector. "Accelerated industry reforms and low penetration levels to drive massive sector growth in India. Liberalization, competition and regulatory changes will shape the insurance sector's development," the report said. The government had earlier this year approved 100 per cent foreign direct investment (FDI) in the insurance sector under the automatic route. S&P said both life and non-life insurance sectors have growth potential, but profitability of non-life insurers could continue to be strained as pricing philosophies lean heavily on

Partnership will use Swiss Re's international platform to offer structured risk solutions to Indian companies

Rising life insurance policy surrenders highlight weak policy persistency, underscoring the need for reforms focused on better products, sales practices and consumer retention

Surrenders and withdrawals accounted for 39% of total benefits paid by life insurers in FY26, overtaking maturity payouts amid rising early exits from long-term policies

Legal experts say the revised regulations could require more insurance share transfers to seek prior regulatory approval, despite higher thresholds under the SBSR Act

Insurance body says the advisory follows ICMR and health ministry guidelines, aims to curb unnecessary hospital admissions and does not restrict doctors' clinical autonomy

Regulator also approves reforms covering investment norms, intermediary registration, capital raising, governance and policyholder protection measures

Public sector banks saw higher insurance commission income in FY26, led by SBI, while mutual fund distribution earnings showed mixed trends across lenders

The Prudential-HCL Group joint venture becomes India's eighth standalone health insurer, with the regulator issuing its third registration of calendar year 2026

Corporation approves direct management of upcoming ESI hospitals, extends the Atal Beemit Vyakti Kalyan Yojana till June 2027, and clears new medical education and healthcare initiatives

The insurer plans to focus on profitable growth by expanding retail health, fire and SME insurance while reducing exposure to intensely competitive group health business

The working group will guide insurers on AI adoption, governance and oversight while ensuring policyholder interests and data protection remain safeguarded

Insurance regulator proposes amendments covering mergers, promoter definitions and shareholding norms while reducing transaction fees to improve ease of doing business

The Appointments Committee of the Cabinet has approved the appointment of LIC's Dinesh Pant and New India Assurance's Girija Subramanian as members of Irdai

The recent trend of CEOs exiting general insurance companies to pursue entrepreneurial ventures highlights the untapped investment potential in the sector, as India continues to remain an under-penetrated market. Some of the sector's most experienced professionals have moved away from established institutions and found funding support coming from the private equity side. For example, Neelesh Garg, former MD & CEO of Tata AIG General Insurance, has co-founded Kiwi General Insurance alongside US-based private equity firm WestBridge Capital. WestBridge holds approximately 70 per cent of the entity, with Garg holding a 30 per cent stake. Insurance regulator, IRDAI, granted Kiwi its certificate of registration in March 2026. Three months later, HDFC Ergo General Insurance MD and CEO Anuj Tyagi quit to pursue entrepreneurial aspirations. Subsequently, Anup Rau stepped down in March this year from the position of MD and CEO of Generali Central Insurance after a seven-year tenure that saw

Irdai's revised compensation norms linking executive pay to customer outcomes and compliance metrics have sparked concerns over growing regulatory intervention

The insurer currently has around 350,000 customers and plans to increase annual customer additions from nearly 25,000 at present to 50,000 initially, before gradually scaling up to 75,000

The insurance regulator has revised remuneration norms for senior executives, mandating stronger focus on claims settlement, grievance redressal and policyholder outcomes