New Delhi: India’s insurance sector recorded robust expansion in FY 2024–25, with total premiums touching ₹11.93 lakh crore and assets under management rising to ₹74.44 lakh crore, senior government officials said, highlighting the industry’s growing role in the country’s financial system and long-term capital formation.
Addressing the third edition of the IFSCA–IRDAI–GIFT City Global Reinsurance Summit, Department of Financial Services (DFS) Secretary M. Nagaraju said India is at the cusp of transformative growth in insurance and reinsurance, aligned with the government’s long-term roadmap of “Insurance for All by 2047”.
Despite a challenging global environment, Nagaraju noted that India remains the world’s fastest-growing major economy, with growth projected at 6.6% in 2026. Citing the Swiss Re Sigma Report, he said India ranked as the world’s 10th largest insurance market by premium volume in 2024, with insurance penetration at 3.7% and density at $97, underlining significant headroom for growth.
During FY25, insurers issued 41.84 crore policies and paid claims worth ₹8.36 lakh crore, while the domestic reinsurance market stood at ₹1.12 lakh crore. The secretary said insurance plays a critical role in protecting households and businesses against risks, mobilising savings and providing long-term funds for infrastructure and other capital-intensive projects.
The government and the regulator have undertaken a series of reforms to deepen insurance penetration and attract global players. These include raising foreign direct investment in insurance to 100%, registering a new reinsurer last year and enacting amendments to insurance laws to strengthen policyholder protection, align data norms with the Digital Personal Data Protection Act and enhance IRDAI’s regulatory powers.
Nagaraju also underlined the role of the International Financial Services Centres Authority (IFSCA) in developing GIFT City as a global reinsurance hub, enabling foreign reinsurers to set up branches and harmonising regulations with global standards. Indian insurers and reinsurers were encouraged to leverage GIFT City to access global markets and work with stakeholders to achieve universal insurance coverage by 2047