India is accelerating efforts to expand insurance coverage and strengthen social security as part of its long-term “Insurance for All by 2047” vision, according to an official release issued by the Press Information Bureau.
The release highlights that India has emerged as the world’s 10th largest insurance market by premium volume, citing data from Swiss Re. The sector has shown steady growth, with total premium income rising to ₹11.93 lakh crore in FY 2024–25, alongside 41.84 crore policies issued and claims worth ₹8.36 lakh crore disbursed during the same period.
The share of insurance and pension funds in household financial assets increased to 29.6% in FY25 from 28.6% in FY19, as noted in the Economic Survey 2025-26, reflecting growing financial awareness among Indian households.
As part of recent reforms, the government has enacted the Sabka Bima, Sabki Raksha (Amendment of Insurance Laws) Act, 2025, raising the foreign direct investment (FDI) limit in the insurance sector to 100%. The move is aimed at attracting long-term capital, enhancing insurance penetration, and improving technological capabilities within the sector.
The Insurance Regulatory and Development Authority of India has also introduced several regulatory changes to strengthen consumer protection and improve accessibility. These include reducing the moratorium period in health insurance to five years, introducing a standard 30-day free-look period for policyholders, and ensuring guaranteed renewal of policies except in cases of fraud.
Government-backed insurance schemes continue to play a significant role in expanding coverage. The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) has recorded 26.88 crore enrolments with over 10.45 lakh claims settled as of February 2026. Similarly, the Pradhan Mantri Suraksha Bima Yojana (PMSBY) has achieved 57.11 crore enrolments, while the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana has issued 43.52 crore health cards, providing coverage of up to ₹5 lakh per family annually.
The insurance sector’s expansion is further supported by improved distribution networks, which have grown to over 83 lakh agents and intermediaries, enhancing reach across rural and economically weaker sections. Additionally, the number of insurer offices increased to 22,076 in March 2025.
The PIB statement noted that reforms such as GST exemption on life and health insurance policies from September 2025 have improved affordability and encouraged wider adoption. Together, these initiatives are aimed at building a more inclusive and resilient financial protection system across the country.