As India becomes a major manufacturing, technology and infrastructure hub, the risks it faces are growing more complex and interconnected. SCOR’s Mr Parag Gupta tells Asia Insurance Review how global reinsurers are helping provide the specialised risk-transfer solutions these risks demand.
India is entering a defining phase in the evolution of its insurance and reinsurance sector. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which raised the foreign direct investment (FDI) limit from 74% to 100%, has strengthened global confidence in the market. India offers a rare combination of economic growth, favourable demographics, digital innovation, policy support and long-term opportunity.
While many mature insurance markets are experiencing modest growth, India stands out as one of the few major economies where economic expansion, rising insurance demand and supportive government policy are progressing simultaneously.
Speaking to Asia Insurance Review, SCOR SE India Branch CEO Parag Gupta said, “For global insurers and reinsurers, India is increasingly viewed not merely as an emerging market but as a strategic destination for long-term investment, innovation and partnership. The opportunity lies not only in the size of the market but also in helping build a more resilient and financially secure society.
“SCOR recognised this potential early by establishing its India Branch in 2016 and becoming one of the first global reinsurers to make a long-term onshore commitment. As we approach a decade of operations in India, our conviction remains stronger than ever. We continue to invest in talent, technical expertise, product innovation and risk capacity to support insurers and contribute to India’s development.”
A massive protection opportunity
Mr Gupta said, “Insurance plays a vital role in safeguarding progress by enabling individuals, businesses and institutions to recover from unexpected events and invest with confidence. The opportunity is amplified by favourable demographics.
“With one of the youngest populations among major economies, rising incomes, growing financial awareness and an expanding middle class are driving demand for life, health, retirement and asset-protection solutions.”
He said, “Insurance is increasingly becoming a core component of long-term financial planning rather than simply a financial product. Health protection deserves particular attention. Rising incomes, longer life expectancy and increasing medical costs are driving demand for better healthcare access and financial protection.”
Expanding health insurance coverage, strengthening healthcare financing and encouraging preventive healthcare solutions will remain critical priorities in the years ahead.
Mr Gupta said, “Government policy has further strengthened confidence in the sector. Initiatives such as Insurance-for-All-by-2047, discussions around Bima Trinity and the Public Insurance Registry (PIR), and the continued development of GIFT City demonstrate a clear commitment to building a world-class insurance ecosystem. These measures send a strong signal that India welcomes long-term capital, expertise and innovation.”
A more complex risk landscape
As India’s economy becomes more sophisticated, its risk landscape is evolving rapidly. The country is emerging as a major manufacturing, technology and infrastructure hub through investments in semiconductors, electronics, electric vehicles, renewable energy, battery storage, logistics corridors and data centres. While these developments support growth, they also create increasingly complex and interconnected risks that require specialised risk-transfer solutions.
At the same time, climate-related risks are becoming more pronounced. Cyclones, unpredictable rains, cloudbursts, floods and extreme heat events demonstrate the growing impact of natural catastrophes on communities, businesses and public infrastructure, and highlight the significant protection gap that still exists.
Mr Gupta said, “In this environment, reinsurance becomes even more important. Additional capacity is essential, but capacity alone is not enough. Advanced catastrophe modelling, climate analytics, risk engineering and sophisticated underwriting expertise are increasingly necessary to help insurers better understand, quantify and manage evolving risks.
“This is where global reinsurers can make a meaningful contribution. At SCOR, we are seeing growing demand not only for risk-transfer capacity but also for technical expertise, product innovation and support in developing solutions for emerging risks. As economies mature, reinsurers increasingly evolve from providers of capital into strategic risk partners.”
Getting the market architecture right
The opportunity ahead is substantial, but success will depend on more than attracting capital. India’s next chapter should focus on creating a predictable, transparent and innovation-friendly environment that supports sustainable long-term development.
Mr Gupta said, “Ease of doing business remains critical. Reinsurance capital is highly mobile and naturally flows towards markets offering regulatory clarity, predictability and operational efficiency. A more principles-based regulatory framework, reduced compliance burdens, streamlined processes and timely decision-making would further enhance India’s attractiveness for global insurance and reinsurance investment.
“Tax certainty is equally important.
Stable, simple and predictable tax regimes increase confidence and encourage investment in local capabilities, talent and technology. In a sector that requires multi-decade commitments, predictability is often as important as opportunity.”
He said, “India should also continue strengthening its reinsurance ecosystem. Foreign Reinsurer Branches (FRBs) have contributed capital, global expertise, product innovation and specialised risk-management capabilities, while investing in local talent, technology, client relationships and operational infrastructure.
“At the same time, India has an opportunity to further strengthen its reinsurance ecosystem through GIFT City. While domestic reinsurers and FRBs remain focused on supporting India’s protection and risk management needs, GIFT City can play a complementary role by attracting offshore reinsurance business, alternative capital and international risk flows.”
He said, “Together, these distinct but complementary pillars can enhance market depth, improve access to capacity and expertise, and support India’s ambition of becoming a leading regional reinsurance hub. Greater clarity around the respective roles of market participants would help unlock these opportunities and create an environment that encourages long-term growth and investment.”
The transition toward Risk-Based Capital (RBC) and alignment with international standards such as IFRS 17 can further strengthen the market by improving transparency, risk management and capital efficiency, while supporting long-term capital deployment.
From protection to resilience
Mr Gupta said, “Insurance can deliver on its promise only when risks are properly assessed, priced and managed. Recent market performance underscores this challenge. In FY 2025-26, the average combined ratio of multi-line general insurers exceeded 121%, a significant deterioration from the previous year. Long-term market development cannot be driven by premium growth alone. To attract and retain long-term capital, particularly foreign investment, the industry must remain anchored in technical underwriting fundamentals.
“Growth that is disconnected from risk-adjusted pricing and portfolio profitability is ultimately unsustainable and can weaken insurer balance sheets, reduce stakeholder and investor confidence and limit the industry’s capacity to protect policyholders when it matters most.”
He said a strong underwriting culture must be supported by stronger data foundations. Better data, combined with AI and advanced analytics, can transform underwriting quality, improve claims outcomes, enhance fraud management and support more efficient deployment of capital. Just as financial markets rely on transparent information to attract investors, insurance markets increasingly depend on robust data ecosystems to attract long-term capital and expertise.
Beyond risk transfer
Mr Gupta said, “The future of insurance must also move beyond risk transfer towards risk prevention. The true value of insurance lies not only in financing recovery after losses occur but in reducing the likelihood and severity of those losses.
“Whether through climate risk solutions, health and wellness initiatives, cyber preparedness, risk engineering or advanced predictive analytics, the industry has an opportunity to help businesses and communities become more resilient before adverse events occur. The most advanced insurance markets are not those that simply pay claims efficiently, but those that actively help prevent losses and improve outcomes.”
Enabling insurers and reinsurers to provide value-added services within an appropriate regulatory framework would strengthen India’s attractiveness as an investment destination, while facilitating the transfer of global expertise, technology and risk management capabilities.
In conclusion Mr Gupta said, “India has already established itself as one of the world’s most dynamic insurance markets. At SCOR, we are proud to be part of this journey, bringing global experience, technical expertise and long-term capital to support India’s continued progress and help build a stronger, more resilient future.” A