Insurance.

Indian insurance collected about ₹12.8 lakh crore of premiums in FY26 (3.7% of GDP), split between life (₹9.5 LC) and general/health (₹3.3 LC), but national accounts count only the ₹2.5 lakh crore service charge the industry keeps for running the pool, equal to 0.8% of national GVA. The industry is concentrated and historically state- and foreign-owned: LIC still writes 57% of life new business, the state controls about 55% of premium, and 20-plus of the life and general insurers are foreign joint ventures now eligible for 100% FDI after the August 2025 cap removal. Growth has run at roughly 13% a year in GVA terms since FY05 on rising private-sector share, and the base case projects GVA reaching ₹4.0 lakh crore by FY30 and ₹7.0 lakh crore by FY35 (12.1% CAGR), driven by ageing-linked savings reallocation, health-cover expansion and a shift toward protection products, tempered by high policy lapse rates and regulatory surrender-value changes. September 2025's GST removal on individual life/health premiums and the FDI liberalisation are the two policy shifts expected to shape the next five years.

Estimated industry GVA

2.5 ₹ lakh crore · FY26

Total premiums

12.8 ₹ lakh crore · FY26

Life premiums

9.5 ₹ lakh crore · FY26

General and health premiums

3.3 ₹ lakh crore · FY26

Premiums / GDP (penetration)

3.7 % · FY26

Listed insurer PAT

0.64 ₹ lakh crore · FY26

Market capitalisation (listed insurers)

12.2 ₹ lakh crore · Jul-26

Employment

~0.4 mn employees plus ~3 mn licensed agents count · FY26