India's insurance market is expected to lead the G20 nations in premium growth at an average rate of 7.3% annually between 2025 and 2029. A new India market outlook report published by global reinsurer Swiss Re released in January 2025 says India is emerging as a global economic powerhouse, supported by robust domestic consumption, private investment and progressive reforms.
With India's union budget 2025 just round the corner, the one major point that requires government's attention on a priority basis is the insurance sector. With health insurance premiums already running high, there is expected to remain high, improving affordability and accessibility could make a huge difference to the lives of millions of Indians.
Insurance penetration in India experienced a dip for the second successive year in 2023-24 according to Insurance Regulatory and Development Authority of India (IRDAI) annual report for the financial year 2023-24. Industry sources say this is worrying and contrary to the global trend.
The Indian union cabinet has cleared the revamped versions of its two-flagship crop-insurance schemes to mitigate growing climate risks for the Indian farmers. The government has also extended the duration of these two crop insurance schemes - Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) - for one more year till 2025-26. A total budget of INR695158m has been allocated for these two schemes.
A survey by LocalCircles India has revealed that the Indian health insurers over the last three years either rejected or approved only partially over 50% of the health insurance claims submitted by health insurance policyholders.
Indian life insurance sector as of 31 March 2024 held unclaimed amounts totalling INR200.62bn ($2.35bn) according to the Insurance Regulatory and Development Authority of India (IRDAI). According to IRDAI annual report for 2023-24 unclaimed amounts of life insurers at the beginning of the financial year 2023-24 was INR222.37bn.
There has been a significant surge (62%) in the number of female salesperson (POSPs) in the Indian insurance industry during the financial year 2023-24.
ICICI Prudential Life Insurance has introduced 'ICICI Pru Wish', a health product catering to women's specific critical illnesses and surgeries.
Any steps taken by the IRDAI to limit the business share of life insurance companies from the parent bank channel or bancassurance channel will be misdirected and stifle the growth of the sector, while not addressing the actual underlying problem of rampant mis-selling, said an Emkay Research report.
The life insurance sector in India posted a robust 19.9% year-on-year (y-o-y) growth in Annual Premium Equivalent (APE) in November, significantly higher than the 10.6% growth recorded in October 2024, data from the Life Insurance Council showed.