Underscoring the vision of ‘Insurance for All by 2047,’ M. Nagaraju, Secretary of the Department of Financial Services (DFS), highlighted the crucial role of the Indian insurance sector in the economy. Speaking at the third ‘IFSC–IRDAI–GIFT City Global Reinsurance Summit’ in Mumbai, he emphasized India’s imminent transformative growth in the reinsurance sector.
In the fiscal year 2024–25, the sector issued 41.84 crore policies, with premiums amounting to Rs 11.93 lakh crore and claims paid totaling Rs 8.36 lakh crore. The assets under management as of March 31 stood at Rs 74.44 lakh crore, with the total reinsurance market in India reaching Rs 1.12 lakh crore in 2024-25.
India, with a population exceeding 1.46 billion, has emerged as a significant global player despite challenging conditions. The country, known as the world’s largest democracy, continues to be the fastest-growing major economy globally.
Referring to the global economic landscape, the Secretary highlighted that the global insurance industry is experiencing a slowdown in premium growth, as per the ‘Swiss Re Sigma’ report. India retained its position as the 10th largest insurance market worldwide in 2024, with a market share of 1.8 percent.
Insurance penetration in India currently stands at 3.7 percent, with life insurance at 2.7 percent and non-life insurance at 1 percent. The country’s insurance density slightly increased to $97, indicating substantial untapped market potential.
Policy frameworks and structural reforms facilitated by the government and the insurance regulator aim to boost growth and enhance insurance accessibility. Noteworthy developments include the increase of foreign direct investment (FDI) in the insurance sector to 100 percent, the registration of a new reinsurer, and the enactment of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025.
