Topic 7: INSURANCE: GOLDEN COVER

In October 2025, India’s insurance sector exhibited strong growth and structural transformation across life, health, and general insurance segments, supported by rising consumer awareness, digital innovation, and economic expansion. The life insurance segment continued its positive trajectory, recording a 5.1% year-on-year rise in New Business Premiums (NBP) for FY 2025, reaching ₹3.97 lakh crore. Individual NBP increased by 11% to ₹1.74 lakh crore, driven by robust new agent recruitment—over 11 lakh additions—and accelerated digitization across distribution channels. While private insurers led this growth with new product offerings and improved customer engagement, the Life Insurance Corporation (LIC) experienced marginal declines in certain key categories due to ongoing product realignments and regulatory adjustments in commissions and surrender values.
In the non-life segment, health and motor insurance were major growth drivers. Private players like ICICI Lombard reported an 18% year-on-year profit increase in Q2 FY25, fuelled by a 50% surge in retail health premiums and a 10% uptick in motor insurance after tax reductions in the auto sector. Rising healthcare costs and post-pandemic
awareness continued to boost health insurance demand. However, public sector general insurers faced weaker underwriting performance and solvency constraints, while private firms expanded aggressively with strong capital positions.
Looking ahead, India’s insurance industry is projected to grow to ₹19.3 lakh crore (US$222 billion) by FY26, supported by digital reforms, AI-driven automation, and broader rural outreach through platforms like IRDAI’s “Bima Sugam.” Emerging trends such as IoT-based insurance—expected to grow at 55% CAGR to ₹1.83 lakh crore by 2033—underscore the sector’s rapid technological evolution.



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