Overview
- The rating agency forecasts GDP growth of 7.3% in FY26, up from 6.5% the previous year, and links stronger growth to higher household incomes and greater insurance uptake.
- Total insurance premiums rose 17% to Rs 10.9 lakh crore in April–November 2025-26, with health up 14% and life new business premiums up 20%, according to Moody’s.
- Moody’s cites digitisation, rising risk awareness and recent tax changes as drivers that should support sustained premium growth and improve profitability.
- Government actions include a completed minority stake sale in LIC and proposals for recapitalising some state-owned insurers and exploring mergers or privatisations to strengthen performance.
- Moody’s flags pressure on capital adequacy and analysts note persistent distribution and operating-cost challenges, even as proposals to lift the insurance FDI cap to 100% could enhance financial flexibility.