INDIA’S ECONOMIC AND INSURANCE MARKET OUTLOOK 2026-2030

NEWS: It projects rapid expansion of insurance sectorà with premium growth accelerating to 6.9% during 2026–2030

Insurance Sector in India

• Indiaà10th largest insurance market by premiums.
• Insurance penetration (premiums as a % of GDP)à stands at 3.7%, (life insurance-2.7%; non-life-1%).
• Insurance density (per capita premium) is USD 97.0.
• In Household Financial AssetsàShare of insurance and pension funds rose to 29.6% in FY25.
• Life insuranceà Accounts for 91% of total assets managed on behalf of clients.

Steps Taken to Strengthen the Sector

• “Insurance for All by 2047”à Vision of Insurance Regulatory and Development Authority of India (IRDAI).
• 2025 amendmentà Raised FDI limit to 100% to attract capital and technology.
• GST Exemptionà GST was removed from individual life and health insurance to improve affordability.
• 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 Yojanaà ₹2 lakh life cover.
• Pradhan Mantri Suraksha Bima Yojanà Accidental death/disability cover at annual premium of ₹20
• PM Jan Arogya Yojanaà Free health cover up to ₹5 lakh/year per family; include seniors aged 70+