India's Insurance Sector: Poised for Unprecedented Growth with Strategic Budgetary Moves

As India approaches the Union Budget announcement, the insurance sector eyes tax benefits and policy incentives against the backdrop of being the fastest-growing market among G20 nations. Industry leaders suggest measures to increase penetration and affordability, paving the way for substantial growth and reforms in the coming years.

India's insurance industry is preparing for significant changes as stakeholders eagerly await tax benefits and policy incentives in the upcoming Union Budget. With a projected status as the fastest-growing market in the G20, industry leaders stress the need for reforms to enhance accessibility and affordability of insurance products.

The Insurance Regulatory and Development Authority of India (IRDAI) reported a slight dip in insurance penetration for the life insurance sector from 3% to 2.8% in 2023-24. However, a Swiss Re report forecasts a 7.3% average premium growth from 2025-29, bolstering India's lead in the global insurance market.

Experts advocate for innovative approaches, including the use of technology and cross-selling strategies, to broaden the customer base. Calls for tax reforms and incentives in rural areas are also highlighted to address the country's lagging insurance penetration and propel the sector towards its ambitious goal of 'Insurance for All by 2047.'

(With inputs from agencies.)