Insurance for all gains momentum with FDI liberalisation and rising risk awareness

Mumbai

2025 highlighted the resilience of India’s general insurance industry, despite regulatory changes and base-related adjustments. As the impact of GST rationalisation stabilised and demand strengthened across segments, the industry closed the year on a significantly stronger footing and is well-positioned for sustained growth.

Another significant milestone was Parliament’s approval of the Sabka Bima, Sabki Raksha (Amendment of Insurance Laws) Bill 2025, which allows 100% Foreign Direct Investment (FDI) in the insurance sector. This forward-looking reform strengthens India’s ambition to build a well-capitalised, globally competitive insurance ecosystem by attracting long-term capital, enabling access to global expertise, and accelerating innovation across technology, risk management, and product design. It is expected to expand customer choice and support sustainable, long-term growth across the sector.

This landmark reform reinforced the three A’s of insurance - Awareness, Accessibility, and Affordability, reflecting strong alignment between the government, the regulator, and the industry towards the shared vision of Insurance for All by 2047.

Talking to Bizz Buzz, Naveen Chandra Jha, MD & CEO, SBI General Insurance, says, “Looking ahead to 2026, climate risk in India is emerging as a significant financial and public health challenge. We are seeing growing demand for coverage beyond traditional health and motor insurance, including cyber risk, Fire Insurance, and emerging business lines, reflecting a more complex and interconnected risk environment.”

Closing India’s protection gap will require continuous product innovation - especially integrated, health-led solutions that emphasise prevention, early intervention, and long-term resilience, along with sustained regulatory support helping build a more prepared and protected India, he said. At SBI General Insurance, our focus remains on profitable growth, innovation, and delivering superior customer experiences. Trust is the foundation of our business, and driving sustainable profitability while strengthening customer confidence will continue to guide everything we do, he added.

The Parliamentary approval of the Insurance Amendment Bill is a defining moment for India’s insurance ecosystem. Allowing 100% FDI is not merely a capital-inflow opportunity; it fundamentally enhances the sector’s ability to underwrite larger and more complex risks, build long-term technical capacity, and bring global standards of governance and innovation into the Indian market.

RakeshJain, CEO, IndusInd General Insurance Company, says, “As Bharat moves toward becoming a $10-trillion economy, the scale and complexity of risks are rising faster than ever. This reform directly addresses the industry’s long-standing need for stronger balance sheets, enabling insurers to invest meaningfully in advanced underwriting, digital infrastructure, and climate-resilient risk solutions.”

For customers, this will translate into more sophisticated products, faster and more efficient claims processes, and greater confidence in the sector’s ability to support India’s development agenda. At IndusInd General Insurance, we see this as a strategic inflection point, one that positions the industry to play a pivotal role in strengthening national resilience and expanding protection coverage across every segment of society, he said.