New Delhi, June 16, 2026
Recent regulatory changes including higher foreign direct investment limits and relaxed governance requirements, increased allure of India’s insurance market to international insurers and reinsurers, a report said on Tuesday.
Further, new players and rising reinsurance capacity are making India’s insurance market more competitive creating broader coverage options, higher limits and more favourable terms for buyers, the report from professional services firm Aon plc said.
Competition is accelerating, driving price reductions and offering more flexible coverage across multiple lines, it noted.
“Insurers continue to reduce pricing across most lines, with double-digit reductions observed in property, directors and officers and cyber, while casualty and automobile lines are experiencing more moderate decreases,” the firm said.
Capacity remains abundant as reinsurers and insurers expand their appetite, supported by the growth of financial hubs such as Gujarat International Finance Tec‑City.
“India presents a compelling growth opportunity for insurers, driven by regulatory reform, expanding reinsurance capacity and increased competition,” said Sushant Sarin, managing director and head of Commercial Risk in India for Aon, said.
Meanwhile, insurers are evolving their underwriting approach with overall conditions remaining flexible, but greater discipline applied in casualty and directors and officers and maintaining rigorous standards in cyber as claims activity increases.
The report also showed that buyers in India are increasingly using favourable market conditions to strengthen their risk profile.
“Increased limits are widely available, and broader coverage is being offered across most lines except cyber, where insurers remain more cautious. Demand for liability and cyber solutions is also growing as organisations become more aware of emerging and evolving risks,” the report added.
“Clients are increasingly moving beyond price and taking a more strategic approach to insurance purchasing. This includes reinvesting savings into improved coverage, higher limits and programme structures aligned with evolving risk exposures,” said Shantanoo Saxena, chief broking officer in India for Aon.(Agency)
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