

Insurance year-ender: After an eventful 2025, insurance looks for stability in the year ahead
Dear reader, as 2025, a year of global tumult and volatility, rolls by, Mint's reporters and columnists look around the corner on what is coming in 2026—to help you know what to expect and prepare for it. Tell us what you think at [email protected].Mumbai: After a slew of big insurance reforms since the end of 2024, India's insurance sector is hoping for an uneventful year ahead that would give industry participants time to adapt to the policy changes, and get back on the growth track.The past year saw the impact of the policy surrender value norms introduced in 2024-end.
This was followed by the rollout of insurance marketplace Bima Sugam, approval for 100% foreign direct investment in insurance, and GST exemption on retail term and health insurance premiums.“India enters 2026 with a rare mix of structural tailwinds, regulatory modernization, digital rails (public and private), and a friendlier tax regime for retail protection. Momentum in both life and non-life should pick up from a softer FY25 base,” said Narendra Bharindwal, president, Insurance Brokers Association of India (IBAI).The rollout of Bima Sugam, full foreign ownership, and the top two reforms of 2025–the Insurance Laws amendments and GST exemption–should support growth going ahead, he added.The 100% foreign direct investment (FDI) allowed under the Insurance Amendment Bill will help attract global capital, enhance competition, strengthen reinsurance capacity as well as facilitate product and technology innovation, said Shruti Ladwa, partner and insurance leader, EY India.“Relaxed merger norms are likely to spur M&A activity in 2026, while policyholder-centric measures such as the Policyholders' Education and Protection Fund (PEPF) and stronger data
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