India Pushes ‘Insurance for All’ Agenda with Wider Coverage, Lower Costs and Major Reforms

India is stepping up its push to expand insurance coverage and strengthen social protection, with the government highlighting a fresh wave of reforms aimed at improving affordability, widening access and making the insurance ecosystem more consumer-friendly. In a PIB note released on April 23, 2026, the government said the broader objective is aligned with the Insurance Regulatory and Development Authority of India’s vision of “Insurance for All by 2047.”

The official note said India is now the world’s 10th largest insurance market by premium volume. During FY 2024-25, the sector issued 41.84 crore policies, collected premiums worth ₹11.93 lakh crore, paid claims of ₹8.36 lakh crore and reported assets under management of ₹74.44 lakh crore. Insurance penetration stood at 3.7%, while insurance density rose to USD 97 per person.

A major part of the government’s insurance expansion strategy has come through legislative reform. Under the Sabka Bima, Sabki Raksha (Amendment of Insurance Laws) Act, 2025, the foreign direct investment limit in insurance has been raised from 74% to 100%. The government said the change is expected to attract long-term capital, deepen insurance penetration, support technology transfer and improve ease of doing business in the sector.

The policy push has also focused on reducing costs for consumers. The PIB release noted that GST exemption on individual life insurance policies, health insurance policies and reinsurance came into effect on September 22, 2025, lowering premium costs and making insurance more affordable for households. Alongside this, IRDAI has introduced several health-insurance reforms, including a shorter moratorium period of five years, a standard 30-day free-look period, guaranteed renewals except in cases of fraud or misrepresentation, portability between insurers, and refunds for the unexpired period in mid-term cancellations under specified conditions.

The government also used the release to underline the scale of flagship protection schemes. As of February 2026, Pradhan Mantri Jeevan Jyoti Bima Yojana had recorded 26.88 crore enrolments and more than 10.45 lakh claims disbursed, while Pradhan Mantri Suraksha Bima Yojana had crossed 57.11 crore enrolments with 1.76 lakh claims settled. Ayushman Bharat-PMJAY, meanwhile, had generated 43.52 crore Ayushman cards by February 28, 2026, including expanded coverage for all senior citizens aged 70 years and above from September 2024.

The PIB note said the overall direction of policy is to make insurance a stronger pillar of financial resilience in India by combining regulatory reform, wider market participation and targeted welfare schemes. With insurance and pension funds accounting for 29.6% of household financial assets in FY25, up from 28.6% in FY19, the government argued that insurance is becoming increasingly central to household financial security as well as to the country’s long-term social protection framework.

Reference: PIB