Reforms may drive insurance growth back to double digits

Insurance sector growth, which has been subdued in FY26 so far, is expected to return to double digits on the back of regulatory reforms, goods and services tax (GST) rationalisation, favourable base effects, and robust demand across key segments, industry leaders said.

- AATHIRA VARIER

The launch of the Bima Sugam digital marketplace, enhanced regulatory powers for the insurance regulator, and amendments to the Insurance Act allowing 100 per cent foreign direct investment (FDI) are also expected to boost growth prospects.

"Calendar year 2025 has been a defining year for India's insurance industry," said Tapan Singhel, managing director (MD) and chief executive officer (CEO) of Bajaj Allianz General Insurance. He said the passage of the Sabka Bima Sabki Raksha Bill and the 100 per cent FDI move have fundamentally reshaped the sector's growth trajectory by opening access to global capital, expertise, and scale. "We are already seeing strong international interest, which reinforces confidence in India's insurance market," Singhel said.

According to industry experts, growth momentum has begun to build, with both life and non-life insurers reporting around 23 per cent premium growth in November, aided by GST rationalisation on insurance premiums, which has improved affordability.