Overview

• During a May 28 review, the finance minister stressed the need for digital transformation by mandating AI-enabled claim settlement systems for motor and health insurance.
• She instructed insurers to diversify portfolios with innovative products for new risks such as cyber fraud.
• All public sector insurers have returned to profitability after a turnaround that saw premium income climb from Rs 80,000 crore in 2019 to nearly Rs 1.06 lakh crore in 2025.
• General insurance penetration remains at around 1% of GDP even as per-person insurance spending rose from US$19 to US$25 between 2019 and 2023 and the industry reported Rs 3.07 lakh crore in total premiums for FY2024-25.
• Insurers were told to align underwriting ratios with global benchmarks and pursue partnerships with intermediaries, fintechs and insurtechs to expand market reach.