India stands at cusp of transformative growth in its reinsurance sector

M. Nagaraju, Secretary, DFS, while addressing the 3rd Edition of the IFSC'IRDAI'GIFT City Global Reinsurance Summit in Mumbai, noted that India stands at the cusp of transformative growth in its reinsurance sector. He opined that 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 Rs 11.93 lakh crore, paid claims of Rs 8.36 lakh crore, and reported assets under management of Rs 74.44 lakh crore as on 31 March 2025. The total reinsurance market in India stood at Rs 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.

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