It projects rapid expansion of insurance sector, with premium growth accelerating to 6.9% during 2026–2030.
Insurance Sector in India
- Global Ranking: India is the 10th largest insurance market by premiums.
- Insurance penetration (premiums as a % of GDP) stands at 3.7%, (life insurance-2.7%; non-life-1%).
- Insurance density (per capita premium) is USD 97.0.
- In Household Financial Assets: Share of insurance and pension funds rose to 29.6% in FY25.
- Life insurance: Accounts for 91% of total assets managed on behalf of clients.
Steps Taken to Strengthen the Sector
- “Insurance for All by 2047”: Vision of Insurance Regulatory and Development Authority of India (IRDAI).
- 2025 amendment: Raised FDI limit to 100% to attract capital and technology.
- GST Exemption: GST was removed from individual life and health insurance to improve affordability.
- Consumer Protection: Moratorium period in health insurance cut to 5 years after which claims can’t be rejected for non-disclosure or hidden details (except fraud).
- Social Security Schemes
- Pradhan Mantri Jeevan Jyoti Bima Yojana: ₹2 lakh life cover.
- Pradhan Mantri Suraksha Bima Yojana: Accidental death/disability cover at annual premium of ₹20
- PM Jan Arogya Yojana: free health cover up to ₹5 lakh/year per family; include seniors aged 70+.
