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Below the Comment on around the insurance industry outlook for 2026 and the overview of 2025 by Mr. Narendra Bharindwal, President, Insurance Brokers Association of India 

Calendar year 2025 will be remembered as a landmark year for the Indian insurance industry, driven by decisive policy reforms, regulatory clarity and a strong growth outlook. The passage of key amendments to the Insurance Act and the move to allow 100% foreign direct investment marked a structural shift, signalling the government’s long-term commitment to building a robust, well-capitalised and globally competitive insurance ecosystem. Alongside this, sustained regulatory focus on consumer protection, governance and market conduct helped strengthen trust and discipline across the sector.”

Another significant development in 2025 was the renewed push towards GST reforms for insurance, with growing recognition that rationalisation of GST - particularly on life and health insurance premiums - is critical for improving affordability and penetration. A more equitable GST framework can meaningfully expand coverage among middle-income households, MSMEs and first-time buyers, directly supporting India’s financial inclusion objectives.

Looking ahead to 2026, the industry’s direction is clearly reform-led, inclusive and technology-driven. The combined impact of Insurance Act amendments, capital liberalisation and digital public infrastructure will accelerate product innovation, embedded and parametric solutions, and deeper penetration in Tier-II, Tier-III and rural markets. At the same time, insurers will need to respond proactively to emerging risks such as climate events, cyber threats, health inflation and longevity challenges. Brokers and intermediaries will play a pivotal advisory role in risk management and claims advocacy. Overall, 2026 is poised to be a year where scale, sustainability and trust converge, positioning insurance as a foundational pillar of India’s economic resilience and social security framework.

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