India's Insurance Sector Soars in 2025: FDI, GST Exemption & Digital Drive Fuel Growth

• India's insurance sector entered a transformative phase in 2025, driven by policy reforms, increased consumer adoption, and accelerated digitalisation.
• Parliament approved the Sabka Bima, Sabki Raksha (Amendment of Insurance Laws) Bill, 2025, allowing 100% FDI, attracting global capital and fostering innovation.
• GST exemption on individual life and health insurance premiums (0% tax) significantly improved affordability and boosted consumer interest.
• Digitalisation, with platforms like Bima Sugam and AI/ML, streamlined operations, enhancing underwriting, claims, and fraud detection.
• Life and health insurance segments saw robust growth, with total premiums expected to reach ₹3.21–3.24 lakh crore, positioning the sector for continued expansion in 2026.

Why It Matters: Policy reforms, FDI, GST exemption, and digitalisation propelled India's insurance sector to robust growth in 2025.