Union Budget 2026: Insurance as a growth enabler

Industry leaders believe Budget 2026 lays a strong foundation for expanding insurance coverage alongside economic growth.

Narendra Bharindwal, President, Insurance Brokers Association of India (IBAI)

The Finance Minister’s Budget is a strong enabler for deepening insurance penetration by addressing the root causes of under-insurance, income volatility, informalisation, climate risk, and infrastructure gaps. The sustained thrust on capital expenditure, infrastructure creation, and urban renewal will directly expand the insurable asset base. Large-scale investments in roads, logistics parks, ports, renewable energy, and affordable housing automatically translate into higher demand for engineering, property, liability, motor, and workers’ compensation covers—making insurance a natural companion to growth, not an afterthought.

The continued focus on MSMEs, Mudra-linked credit, and ease of doing business is equally significant. When credit penetration expands, insurance penetration follows. Equally important is the emphasis on climate resilience, disaster preparedness, agriculture, and rural infrastructure.

Taken together, this Budget strengthens the foundations for achieving the national vision of ‘Insurance for All’ through broad-based, resilient growth.