Will the Government Achieve Insurance for All by 2047?
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Synopsis
The Indian government is on a mission to provide insurance for every citizen by 2047. With transformative ambitions in the insurance sector, the DFS Secretary highlights significant growth and regulatory reforms that could reshape the future of financial security in the nation.
Key Takeaways
- Vision of ‘Insurance for All by 2047’ aims for universal coverage.
- Indian insurance plays a crucial role in the economic framework.
- Policy frameworks are being reformed for better accessibility.
- Insurance penetration shows untapped market potential.
- FDI in insurance has been raised to 100 percent.
Mumbai, Jan 19 (NationPress) Emphasizing the goal of ‘Insurance for All by 2047’ as a framework for inclusive growth in the insurance industry, M. Nagaraju, Secretary of the Department of Financial Services (DFS), stated on Monday that the Indian insurance sector, a vital element of the financial ecosystem, significantly contributes to the economy by offering protection against mortality and property risks, promoting savings, and supplying long-term funding for infrastructure projects and other lengthy ventures.
Speaking at the third ‘IFSC–IRDAI–GIFT City Global Reinsurance Summit’ in Mumbai, the Secretary remarked that India is on the brink of transformative advancements within its reinsurance sector.
In the fiscal year 2024–25, the sector issued 41.84 crore policies, gathered premiums of ₹11.93 lakh crore, settled claims amounting to ₹8.36 lakh crore, and reported assets under management totaling ₹74.44 lakh crore as of March 31. The overall reinsurance market in India was valued at ₹1.12 lakh crore in 2024-25.
Addressing the global economic landscape, the Secretary pointed out that India, with a population exceeding 1.46 billion, is the world’s largest democracy and, despite challenging global circumstances, has positioned itself as a global contender and remains the fastest-growing major economy worldwide.
On the global insurance landscape, referencing the ‘Swiss Re Sigma’ report, the Secretary mentioned that following a robust performance in 2024, growth in the global insurance sector is experiencing a slowdown in both life and non-life categories due to economic downturns and fluctuating policy environments.
The report indicated that India retained its position as the 10th largest insurance market globally by nominal premium volumes in 2024, capturing a market share of 1.8 percent.
Insurance penetration was recorded at 3.7 percent, with life insurance at 2.7 percent and non-life at 1 percent, while insurance density saw a slight rise to $97, highlighting considerable untapped market potential.
The government and the insurance regulator have established policy frameworks and structural reforms to enhance growth and accessibility in insurance.
Additionally, foreign direct investment (FDI) in the insurance sector has been increased to 100 percent, a new reinsurer was registered last year, and the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 facilitates the creation of a Policyholders’ Education and Protection Fund, aligns data protection with the Digital Personal Data Protection Act, 2023, and strengthens IRDAI’s regulatory capabilities.
Point of View
The ambitious goal of 'Insurance for All by 2047' reflects the government's commitment to enhancing financial security for every citizen. As India navigates its way through global economic challenges, the reforms in the insurance sector could significantly uplift the socio-economic landscape, ensuring a more inclusive future for all.
NationPress
20/01/2026
Frequently Asked Questions
What is the goal of 'Insurance for All by 2047'?
The goal is to ensure that every citizen in India has access to insurance, promoting financial security and inclusiveness.
How does the Indian insurance sector contribute to the economy?
It provides protection against various risks, encourages savings, and offers long-term funding for infrastructure development.
What are the recent developments in the insurance sector?
Foreign direct investment has been increased to 100%, and new regulations are aimed at protecting policyholders.
What is the current insurance penetration in India?
Insurance penetration stands at 3.7%, showcasing significant potential for growth.
What does the 'Swiss Re Sigma' report indicate about global insurance trends?
The report highlights a slowdown in premium growth across the global insurance industry due to economic challenges.
