Advantage India
Robust
Demand
*India's insurance sector has witnessed significant growth, with the domestic market expanding at CAGR of 17% over the past two decades. It is projected to reach Rs. 19,30,290 crore (US$ 222 billion) by FY26. This growth has been driven by increased awareness, favorable regulatory changes, and greater participation from the private sector
*In FY25, The sector recorded a 5.1% year-on-year increase in New Business Premium (NBP) totaling Rs. 3.97 lakh crore (US$ 46.5 billion). Individual NBP grew by 11% to Rs. 1.74 lakh crore (US$ 20.36 billion), driven by the addition of over 11 lakh new agents and ongoing digitization efforts.
Attractive
Opportunities
*Robotic Process Automation (RPA) and AI will occupy center stage in insurance, driven by newer data channels, better data processing capabilities and advancements in AI algorithms.
*Bots will become mainstream in both the front and back-office to automate policy servicing and claims management for faster and more personalized customer service.
*The rise of digital-only insurers and aggregator platforms is opening new avenues for reaching untapped customer segments, particularly millennials and rural populations. Platforms like IRDAI’s "Bima Sugam" are simplifying policy purchase and comparison
*India’s IoT insurance market is projected to reach Rs.1,83,120 crore (US$ 21.4 billion) by 2033, growing at nearly 55% annually.
Policy
Support
*The Indian government has increased the Foreign Direct Investment (FDI) limit in insurance companies from 74% to 100%, enabling complete foreign ownership. This strategic decision is intended to attract additional capital into the long-term, capital-intensive insurance sector, ensuring that insurers invest all collected premiums within the country.
*Insurance cover for 74.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yojana was provided till April 2025.
Increasing
Investments
*The IPO of LIC of India was the largest IPO ever in India and the sixth biggest IPO globally in FY22
*In February 2025, nine insurers, including HDFC Ergo and SBI General, have submitted IPO plans to IRDAI as part of a push to raise capital and strengthen governance in India’s insurance sector.
*At least six Indian reinsurance companies, plan to launch IPOs over this year and next, selling 10–15% stakes to raise capital and expand market presence.
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