Overview
- Moody’s forecasts GDP growth of 7.3% in FY26, up from 6.5% a year earlier, which it says will lift household incomes and boost demand for insurance protection.
- Total insurance premium revenue rose 17% to Rs 10.9 lakh crore in April–November 2025-26, with health premiums up 14% and life new business premiums up 20%.
- The agency attributes sustained premium momentum to broader digital distribution, rising risk awareness and supportive tax changes.
- Policy efforts include a minority stake sale in LIC, proposals to recapitalise select public insurers subject to underwriting improvements and options under consideration for mergers or privatisation.
- Moody’s highlights plans to lift the FDI cap in insurers to 100% from 74% to enhance financial flexibility, while cautioning that capital adequacy and high distribution and operating costs remain constraints.