India's Insurance Reforms Stall: Promise vs. Reality Gap Widens

• India's insurance sector faces a growing disparity between IRDAI's ambitious reform promises and actual implementation as 2026 approaches.
• Key structural reforms like Composite Licensing and 100% FDI are stalled due to legislative bottlenecks and lack of parliamentary action.
• Digital initiatives such as Bima Sugam (national marketplace) and Bima Vistar (bundled policy) face delays over governance, technical complexities, and industry readiness.
• Risk-Based Capital (RBC) implementation is pending due to operational challenges for smaller insurers and concerns about transition volatility.
• Bima ASBA, an IPO-like premium mechanism, is delayed for most insurers due to complex integration requirements with banks and NPCI.

Why It Matters: Major insurance reforms in India are facing significant delays, highlighting a gap between regulatory vision and ground-level execution.