Chandigarh, Dec 20: India’s general insurance industry demonstrated steady progress in 2025, with gross premiums reaching INR 3.08 trillion a 6.2% growth. Yet, non-life insurance penetration remains around 1%, far below the global average of 4%, signaling vast untapped potential. Health insurance led the portfolio, contributing over one-third of premiums, driven by rising awareness, post-pandemic financial protection needs, and medical inflation of nearly 12%. These trends underscore the sector’s resilience and adaptability amid economic and regulatory changes said Mr. Rakesh Jain, IndusInd General Insurance.
Looking ahead, 2026 promises accelerated growth of 8–13%, fueled by increasing insurance awareness, deeper penetration into underserved markets, and sustained demand for health and commercial lines. Technology will remain a defining catalyst, with AI-driven underwriting, telematics-based motor products, and platforms like Bima Sugam transforming accessibility and customer experience. Digital adoption already grew over 30% in 2025, reflecting a clear shift toward convenience and transparency. These innovations will not only improve efficiency but also deliver personalized solutions that strengthen trust and engagement.
Rapid digitalisation has improved convenience but introduced new challenges. Insurance fraud costs the industry nearly INR 50,000 crore annually, with 10% of premiums lost to fraudulent activities. Cybersecurity threats are escalating India saw 2.04 million incidents in 2024, including a breach exposing 31 million records. Phishing attacks in BFSI surged 175%, while deepfake scams jumped 280%. The average cost of a data breach is INR 19.5 crore, underscoring the financial impact. Investments in AI-powered fraud analytics, predictive risk scoring, and robust cybersecurity frameworks are now mission-critical to safeguard trust and ecosystem integrity.
Recent GST reforms, including the removal of GST on select products, are improving affordability and will drive penetration in 2026. Climate risks remain critical, India faced over 240 extreme weather events in 2024, causing economic losses exceeding USD 10 billion. Innovative solutions like parametric insurance and advanced climate risk modeling are essential for faster payouts and resilience. These products can ensure protection for communities and businesses alike.
As we step into 2026, our focus is clear: strengthen trust, elevate customer experience, and expand inclusive protection. A digital-first approach across distribution, underwriting, and claims will be key to achieving the nation’s vision of ‘Insurance for All’ by 2047. Every process, product, and interaction must be powered by technology to deliver speed, transparency, and convenience. The future is promising, and with collaboration and foresight, we are poised to deliver sustainable growth while safeguarding the interests of millions. Together, we will shape a future where insurance is accessible, affordable, and trusted by all.
