Aon’s Global Insurance Market Insights Report | India Insi

The Indian insurance market continues to experience soft conditions overall, with notable exceptions in cyber and property insurance. While cyber insurance is facing rising claims costs, it also presents a significant growth opportunity. Property insurance, meanwhile, is adapting to changes in insurer pricing methodologies, with the introduction of quasi-tariff rates making it more challenging to secure changes to policy wordings.

Market capacity in India is increasing, supported by the entry of new insurers, ongoing mergers and acquisitions within the sector, and a growing presence of foreign reinsurers. At the same time, the market is rapidly adopting digital technologies that simplify insurance purchasing and expand access. Foreign direct investment inflows, strengthened by the recent increase in the FDI limit to 100%, are further fueling competition and innovation across the industry.

“Overall, the Indian insurance market in 2025 presents a dynamic and fast-growing environment - with strong government backing, technological innovation, and increasing investor interest. This means more choice for buyers. Although global geopolitical tensions and trade disruptions pose risks, India’s market fundamentals and digital transformation in insurance distribution are helping to mitigate uncertainty.”

• Shantanoo Saxena, Chief Broking Officer, Commerical Risk, Health and Wealth Solutions, India, Aon

India Market Dynamics

• Pricing: With ample capacity in the market, pricing is generally flat-to-decreasing in most lines of business. Property is the main exception, with changes to India’s rating system resulting in double-digit increases.
• Capacity: Capacity is ample across the market, reflecting India’s relatively low take-up rates.
• Underwriting: Prudent underwriting continues in the Indian market but is more rigorous for cyber where each insurer has their own underwriting criteria and requirements.
• Limits: Limits are generally increasing, with local insurers able to provide large limits, particularly across specialty lines.
• Deductibles: Deductible levels are typically flat but increasing for cyber due to rising claims trends.
• Coverages: Broader coverages are available to meet demand and as insurers look to provide added value to insureds.

India Product Trends

• Automobile: Favorable claims experience is resulting in buyer-friendly pricing, leading many buyers to explore optional automobile damage coverage in addition to compulsory third party liability policies.
• Casualty/Liability: Driven by favorable claims experience, capacity is sufficient, resulting in attractive pricing and broader coverage.
• Cyber: Insurers recognize the potential growth opportunity in India yet are rigorous in their underwriting and mandating deductible increases in some cases due to rising claims costs.
• Directors & Officers: The market is soft, with ample capacity, modest price reductions and broader coverage available for most risks. Increased awareness is leading to growing demand for directors and officers insurance in India.
• Property: Capacity is ample, yet the market is volatile. Recent changes to India’s tariff system, which went into effect on January 1, 2025, have resulted in an inconsistent response by insurers. Generally, the changes are leading to increased premiums, but with new reinsurers entering the local market, buyers have more options.