General Insurance: A Pillar of Resilience for a Resurgent India

In FY26’s second quarter, India’s GDP grew by 8.2%, much higher than the figure of 5.6% in the corresponding period a year ago. It evidences the Indian economy’s resilience despite rising geo-political volatility and global policy instability. The general insurance (GI) sector mirrors this resilience.

Despite a tepid performance in the crop insurance segment resulting in a marginal 1.6% dip in premium growth in August 2025, the sector managed to outperform expectations with fire and engineering, and third-party motor insurance premiums, surging 9.8% and 8.1%, respectively. 

Insurance, including GI, enables people, and consequently the economy, to overcome financial shocks, thereby fortifying the economy. For instance, when floods damage crops, farmers receive compensation when covered by insurance, thereby preventing them falling prey to loan and land sharks. Likewise, through health insurance, the industry allows people to protect their finances from unexpected drain due to health emergencies. Clearly, insurance plays a vital role in protecting citizens and allowing them to continue their economic activities uninterrupted despite financial shocks. 

Unlocking India’s full potential 

Universal financial security has been considered by economists and policymakers alike as having the power to catalyse equitable economic development. As part of its efforts to drive the same, the Insurance Regulatory and Development Authority of India (IRDAI) has set an ambitious goal of “Insurance for All by 2047.” It envisages an inclusive insurance ecosystem where financial protection facilitates unlocking India’s collective growth actions. 

Digital technology and access are emerging as the central force behind delivering inclusive insurance. It is now improving the reach and efficiency of insurance-led financial protection. InsurTechs, through technological intervention, digital platforms, and data analytics, have opened access for a vast majority of the population. Technologies, including Artificial Intelligence, blockchain and big data are contributing to transforming the GI sector into a customer-centric, economic and efficient ecosystem.

These technologies have introduced efficiencies in all aspects of insurance operations. Apart from easier and more convenient claim settlements, they have also enabled the delivery of insurance services to semi-urban and rural geographies. Faster claim settlement cycles are now setting new benchmarks for trust and service. 

The digital advancement, along with the on-ground distribution efforts by the insurance players, promise to bridge India’s significant protection gap and facilitate India’s economic growth. By supporting IRDAI’s vision, the industry can reshape risk protection as a base for inclusive and sustainable development.

Beyond insurance products, India’s general insurers are delivering financial protection solutions nationwide by integrating innovations. By protecting households from financial collapse, farmers from crop failures, and businesses from operational disruptions, GI is allowing policyholders to tide over financial difficulties. In turn, it is making the economy more resilient and accelerating universal development and financial well-being. 

India’s aspirations of becoming a $5 trillion economy by 2030 can only come to fruition when its residents possess the ability to deal with financial shocks. GI can become a financial tool that can shield its citizens against adverse events and fortify their ability to absorb shocks, thereby facilitating growth and catalysing development.

Alok Agarwal is MD & CEO at Zurich Kotak General Insurance Company (India) Limited.