India’s insurance market is becoming increasingly competitive, enabling businesses to secure broader coverage, higher policy limits and more favourable terms as insurers and reinsurers expand capacity, according to a new report released by Aon.
The findings, part of Aon’s 2026 Global Insurance Market Insights report, indicate that recent regulatory reforms, including higher foreign direct investment limits and relaxed governance requirements, are attracting more international insurers and reinsurers to the country. The influx of new players and increased reinsurance capacity have intensified competition, resulting in price reductions across several insurance segments.
According to the report, insurers have implemented double-digit pricing cuts in property, directors and officers (D&O), and cyber insurance lines, while casualty and automobile insurance have witnessed more moderate declines. Capacity remains abundant as insurers broaden their risk appetite, supported by the growth of financial centres such as Gujarat International Finance Tec-City (GIFT City).
SushantSarin, managing director and head of Commercial Risk in India at Aon, said the favourable market conditions provide clients with an opportunity to optimise insurance programmes by obtaining broader coverage and higher limits while strengthening resilience against emerging risks.
In Kolkata, insurance buyers across eastern India are expected to benefit from the softer pricing environment and greater availability of coverage. Industry observers believe businesses in Kolkata, particularly in manufacturing, logistics, infrastructure and services sectors, could leverage competitive market conditions to enhance protection against cyber, climate and supply chain risks while improving long-term risk management strategies.
The report also noted growing demand for liability and cyber insurance solutions as organisations become more aware of evolving risk exposures. ShantanooSaxena, chief broking officer in India for Aon, said clients are increasingly reinvesting savings from lower premiums into improved coverage and higher limits rather than focusing solely on cost reductions.