India’s insurance and reinsurance sector is entering a decisive phase of transformation, driven by strong domestic growth, progressive regulatory reforms, and a clear long-term vision of “Insurance for All by 2047.” This was highlighted by Shri M. Nagaraju, Secretary, Department of Financial Services (DFS), while addressing the 3rd Edition of the IFSCA–IRDAI–GIFT City Global Reinsurance Summit, held in Mumbai on 19 January 2026.
Opening his address, the Secretary lauded the rapid progress of GIFT City IFSC, calling it a cornerstone of India’s ambition to become a Global Reinsurance Hub. He noted that the summit’s theme—“Bridging India Today, Insuring India Tomorrow – the India Evolution Roadmap”—closely aligns with the government’s broader goal of ensuring inclusive and affordable insurance coverage for every citizen by 2047.
Insurance and Reinsurance: Pillars of Economic Growth
Describing the summit as a vital platform for collaboration, Shri Nagaraju emphasized the strategic role of insurance and reinsurance in supporting India’s economic aspirations. As India strengthens its position in the global economy, these sectors are expected to play a critical role in risk mitigation, capital formation, and long-term infrastructure financing.
Highlighting India’s macroeconomic strength, the Secretary noted that with a population exceeding 1.46 billion, India is the world’s largest democracy and continues to be the fastest-growing major economy, with growth projected at 6.6 per cent in 2026, despite global economic headwinds.
Global Insurance Trends and India’s Position
Referring to the Swiss Re Sigma Report No. 02/2025, the Secretary observed that global insurance premium growth, after a strong performance in 2024, is showing signs of moderation across both life and non-life segments. This slowdown is attributed to global economic uncertainty and an unstable policy environment.
Against this backdrop, India’s performance stands out. In 2024, India emerged as the 10th largest insurance market globally by nominal premium volumes, with a market share of 1.8 per cent. Insurance penetration in the country stood at 3.7 per cent, comprising 2.7 per cent life insurance and 1 per cent non-life insurance, while insurance density rose marginally to USD 97. These figures underline the vast untapped potential of the Indian insurance market.
Strong Domestic Performance in FY 2024–25
The Secretary highlighted the robust growth of the Indian insurance sector during FY 2024–25, reinforcing its importance within the financial system. During the year:
41.84 crore insurance policies were issued
₹11.93 lakh crore was collected as premium
₹8.36 lakh crore was paid out as claims
Assets Under Management (AUM) reached ₹74.44 lakh crore as on 31 March 2025
The total reinsurance market in India stood at ₹1.12 lakh crore, reflecting growing sophistication and scale in risk management.
Beyond protection against mortality, property, and casualty risks, the insurance sector continues to encourage household savings and provide long-term funds for infrastructure and other long-gestation development projects.
Policy Reforms Driving Accessibility and Confidence
Shri Nagaraju underscored the government’s commitment to strengthening the insurance ecosystem through forward-looking reforms. Key policy initiatives include:
Raising Foreign Direct Investment (FDI) in insurance to 100 per cent
Registration of a new reinsurer in the previous year
Enactment of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025
The new law introduces several significant measures, including the creation of a Policyholders’ Education and Protection Fund, alignment of insurance data governance with the Digital Personal Data Protection Act, 2023, and enhanced regulatory powers for IRDAI, all aimed at improving transparency, consumer protection, and sectoral resilience.
GIFT City and India’s Global Reinsurance Ambition
Concluding his address, the Secretary highlighted the pivotal role of the International Financial Services Centres Authority (IFSCA) in positioning India as a global reinsurance destination. Under the IFSCA Act, 2019, GIFT City IFSC has been designed to operate in line with international standards by:
Regulating IFSC Insurance Offices
Enabling foreign insurers and reinsurers to establish branches in India
Harmonising domestic regulations with global best practices
Facilitating reinsurance transactions across IFSCs, SEZs, domestic tariff areas, and overseas markets
India’s insurance and reinsurance sectors, the Secretary noted, are on a clear upward trajectory. He encouraged Indian insurers and reinsurers to leverage GIFT City as a gateway to global opportunities and work collaboratively with regulators and international partners to realise the vision of “Insurance for All by 2047.
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