Moody's Projects India's FY26 Growth at 7.3%; Insurance Demand to Surge

• Moody's Ratings forecasts India's economy to grow by 7.3% in FY2025-26, driven by strong economic expansion.
• Rising household incomes and increased risk awareness among consumers are expected to fuel demand for insurance protection.
• Digitization and tax changes will boost premium growth and profitability for Indian insurance companies, despite capital adequacy pressures.
• The government aims for 'Insurance for All' by 2047, promoting digitization and considering recapitalization, mergers, or privatization for state-owned insurers.
• Raising the FDI limit in insurance to 100% could enhance financial flexibility and strengthen balance sheets for insurers.

Why It Matters: India's economy is set for robust growth, driving insurance demand and industry transformation through digitization and policy reforms.