Recent regulatory changes, including higher foreign direct investment limits and relaxed governance requirements, have increased the attractiveness of India's insurance market to international insurers and reinsurers, a report said on Tuesday.
The report by professional services firm Aon plc said that the entry of new players and rising reinsurance capacity are making India's insurance market more competitive, leading to broader coverage options, higher limits and more favourable terms for buyers.
It noted that increasing competition is accelerating price reductions and offering more flexible coverage across multiple insurance lines.
According to the report, insurers continue to reduce pricing across most lines, with double-digit reductions seen in property, directors and officers, and cyber insurance. Casualty and automobile insurance lines, meanwhile, are experiencing more moderate decreases.
The report said market capacity remains abundant as insurers and reinsurers 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.
The report further showed that buyers in India are increasingly taking advantage of favourable market conditions to strengthen their risk profiles.
It noted that increased limits are widely available and broader coverage is being offered across most lines, except cyber insurance, where insurers remain more cautious. Demand for liability and cyber solutions is also growing as organisations become more aware of emerging and evolving risks.
“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.
With Inputs From IANS