In FY25, the insurance sector collected ₹11.93 lakh cr in premium and issued 41.84 cr policies. Insurance penetration - premium as a share of GDP - stood at 3.7%, unchanged from the year before. Life insurance penetration slipped to 2.7% from 2.8%, while non-life penetration stayed flat at 1%. In FY26, however, ₹13.30 lakh cr of premiums were collected, reflecting growth of 12.5% in life insurance and 11% in non-life, respectively. Once again, life and non-life insurance penetration stayed flat.
So, the industry was selling more than ever, while failing to drive two key IRDAI objectives: reach, and access. Instead, the industry was more successful at selling to existing customers than it was at acquiring new customers or retaining clients of recent vintage. Something had to be done. But what?
