Insurance in India

Insurance in India is provided by both public and private-sector companies. India's Constitution lists it under the Union List, meaning only the central government can legislate on it. Since 1999, the Insurance Regulatory and Development Authority of India (IRDAI) has regulated the sector. The insurance sector has gone through several phases, allowing private companies to solicit insurance and also permitting foreign direct investment (FDI) in Indian insurance companies. India allowed private companies in the sector in 2000, setting a limit of 26% on FDI; it was increased to 49% in 2014, 74% in May 2021, and 100% in December 2025.

The insurance sector was partly nationalized in 1956 with the creation of the Life Insurance Corporation of India, making it unlawful for private companies to offer life insurance products. Later in 1972, the general insurance business was nationalized through the General Insurance Business (Nationalisation) Act, 1972. The Act nationalised all private companies in the general insurance business in India: 55 domestic companies and 52 foreign companies. The 107 acquired companies were merged into four separate companies.

Most Indians are uninsured or underinsured. Insurance penetration in India was 3.7% in 2023-24, falling from a peak of 4.2% in 2021 following the COVID-19 pandemic; life insurance penetration was 2.7% in 2024-25. 40 crore people in India lack any form of health insurance. IRDAI has announced its vision of 'Insurance for All by 2047'.