DFS
Secretary Highlights India’s Reinsurance Growth Potential at IFSC–IRDAI–GIFT
City Global Reinsurance Summit
Ø Secretary
underscores vision of “Insurance for All by 2047” as roadmap for inclusive insurance
growth
Ø Insurance
sector records strong growth in FY 2024–25 with premiums of ₹11.93 lakh crore
and AUM of ₹74.44 lakh crore
·
M. Nagaraju, Secretary, Department of Financial Services
(DFS) addressed the 3rd
IFSC–IRDAI–GIFT City Global Reinsurance Summit in Mumbai on 19 January 2026,
praising the strong performance of IFSC
GIFT City.
·
He stated that India is at a transformative stage in reinsurance,
aligning the summit theme with the national vision of “Insurance for All by 2047.”
·
Emphasising India’s macroeconomic strength, he noted that
despite global challenges, India remains the fastest-growing major economy, with GDP growth projected at 6.6% in 2026.
·
Citing the Swiss
Re Sigma Report 2025, he said India was the 10th largest global insurance market
in 2024 with 1.8% market
share, insurance penetration of 3.7%, and insurance density of USD 97, indicating vast
untapped potential.
·
The Indian insurance sector plays a key economic role by risk protection, mobilising savings, and
financing long-term infrastructure; in FY 2024–25, it issued 41.84 crore policies,
collected ₹11.93
lakh crore in premiums, paid ₹8.36 lakh crore in claims, and
managed assets of ₹74.44
lakh crore.
·
The reinsurance
market stood at ₹1.12 lakh crore in 2024–25.
·
Policy reforms supporting growth include 100% FDI in insurance,
registration of a new
reinsurer, and enactment of the Sabka Bima Sabki Raksha
(Amendment of Insurance Laws) Act, 2025, strengthening
policyholder protection and IRDAI’s regulatory powers.
·
He underlined IFSCA’s
role in positioning GIFT
City as a Global Reinsurance Hub, enabling foreign reinsurers,
harmonising regulations with global standards, and facilitating cross-border
reinsurance.
·
The Secretary concluded that India’s insurance and
reinsurance sectors are on a strong
upward trajectory, urging stakeholders to leverage GIFT City to access
global opportunities and achieve universal
insurance coverage by 2047.
M. Nagaraju, Secretary,
DFS, addressed the 3rd Edition of the IFSC–IRDAI–GIFT City Global Reinsurance Summit
in Mumbai, on 19 January, 2026. The address began by commending the outstanding
performance of IFSC GIFT City. The Secretary stated that India stands at the cusp
of transformative growth in its reinsurance sector, and that the theme “Bridging
India Today, Insuring India Tomorrow – the India Evolution Roadmap” is closely aligned
with the vision of “Insurance for All by 2047”.
The IFSCA–IRDAI
GIFT City Global Reinsurance Summit was described by the Secretary as a vital platform
that brings together key stakeholders from the financial services sector. Insurance
and reinsurance were emphasised as crucial in driving India towards its economic
objectives, particularly as the country strengthens its role in the global economy.
Referring to the global economic scenario, the Secretary noted that India, with
a population of more than 1.46 billion, is the world’s largest democracy and, despite
challenging global conditions, has emerged as a global player and remains the world’s
fastest-growing major economy, with growth projected at 6.6 per cent in 2026.
On the global insurance
scenario, citing the Swiss Re Sigma Report (No. 02/2025), the Secretary said that
after strong performance in 2024, premium growth in the global insurance industry
is slowing in both life and non-life segments due to global economic slowdown and
an unstable policy environment. As per the Swiss Re report, India remained the 10th
largest insurance market globally by nominal premium volumes in 2024, with a market
share of 1.8 per cent. Insurance penetration stood at 3.7 per cent, with life insurance
at 2.7 per cent and non-life at 1 per cent, while insurance density increased marginally
to USD 97, indicating significant untapped market potential.
The Secretary also
indicated that the Indian insurance sector, an integral part of the financial system,
plays a significant role in the economy by providing protection against mortality,
property and casualty risks, encouraging savings, and providing long-term funds
for infrastructure development and other long-gestation projects. During FY 2024–25,
the sector issued 41.84 crore policies, collected premiums of ₹11.93 lakh
crore, paid claims of ₹8.36 lakh crore, and reported assets under management
of ₹74.44 lakh crore as on 31 March 2025. The total reinsurance market in
India stood at ₹1.12 lakh crore in 2024–25.
The government and
the insurance regulator have enabled policy frameworks and structural reforms to
further growth and insurance accessibility. Foreign Direct Investment in the insurance
sector has been raised to 100 per cent, a new reinsurer was registered last year,
and the Sabka Bima Sabki Raksha (Amendment of Insurance
Laws) Act, 2025 provides for the formation of a Policyholders’ Education and Protection
Fund, aligns data protection with the Digital Personal Data Protection Act, 2023,
and enhances IRDAI’s regulatory powers.
Concluding the address,
the Secretary highlighted the role of IFSCA in advancing India’s aspiration to become
a Global Reinsurance Hub. Under the IFSCA Act, 2019, GIFT City IFSC aligns with
global counterparts, regulates IFSC Insurance Offices, enables foreign reinsurers
to set up branches, harmonises regulations with global standards, and facilitates
reinsurance across IFSCs, SEZs, domestic tariff areas, and overseas markets. India’s insurance and reinsurance sectors were
noted to be on an upward trajectory, with Indian insurers and reinsurers encouraged
to tap global opportunities through GIFT City and to work collaboratively with all
stakeholders towards achieving “Insurance for All by 2047”.