India’s insurance market continues to remain largely soft, with stable or declining prices across most segments, according to Aon’s Global Insurance Market Insights Report. However, property and cyber insurance stand out as exceptions, witnessing rising costs and tighter underwriting norms. The report notes that market capacity in India is expanding due to the entry of new insurers, mergers and acquisitions, and increased participation by foreign reinsurers. This trend is being further supported by the government’s decision to raise the foreign direct investment limit in insurance to 100 per cent, boosting competition and innovation.
In Kolkata and other eastern Indian markets, buyers are benefiting from broader coverage options and improved limits, particularly in casualty, automobile and directors and officers insurance. However, property insurance has become more volatile following changes in India’s tariff system from January 1, 2025, leading to higher premiums in several cases.
Cyber insurance continues to present a growth opportunity, though insurers are adopting stricter underwriting practices due to rising claims costs. Despite global geopolitical risks, India’s strong fundamentals and digital adoption are helping the insurance market remain resilient and buyer-friendly overall.