India’s general insurance industry experienced steady growth in 2025, driven by increased awareness, improved penetration, and a shift towards digital solutions. According to Subrata Mondal, Managing Director & CEO of IFFCO TOKIO General Insurance Company Limited, the health insurance segment saw significant demand due to the waiver of Goods and Services Tax (GST) for retail customers. The motor insurance segment also witnessed growth following the reduction of GST in the automobile sector and stricter enforcement of mandatory insurance by government agencies.
Mondal noted that evolving risks, such as climate-linked risks, trade uncertainties, cyber-attacks, and merger & acquisition risks, have led to the emergence of new solutions in the corporate sector. The Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, is a key development for the industry, with proposals such as allowing up to 100% Foreign Direct Investment (FDI) in insurance companies and formal recognition of Managing General Agents (MGAs). These changes are expected to attract fresh capital, improve distribution efficiency, and expand coverage to underserved segments.
The growth of GIFT City as an international insurance and reinsurance hub is also strengthening India’s position as a regional risk-management center. Looking ahead to 2026, the sector is optimistic about consolidation, adaptability, and sustainable growth. Insurers are expected to focus on underwriting discipline, data-driven decision-making, and customer-centric innovation. Overall, India’s general insurance industry is poised for continued growth and development, driven by government initiatives, technological advancements, and evolving customer needs.
The industry’s growth is also expected to be driven by the increasing demand for digital solutions, with insurers investing in technology to improve their distribution channels and customer engagement. The focus on digital solutions is expected to continue, with insurers leveraging data analytics and artificial intelligence to improve their underwriting and claims processing. With the government’s support and the industry’s focus on innovation and customer-centricity, India’s general insurance industry is expected to continue its growth trajectory in 2026.