Insurers Seek Reforms to Boost Coverage and Affordability
Life and general insurers are urging the government to introduce targeted fiscal and structural reforms in Union Budget 2026 to make insurance more affordable and accessible, supporting the vision of “Insurance for All by 2047.” Industry leaders highlighted the need for tax parity between life policies and unit-linked plans, simplified annuity taxation, and incentives for long-term savings, particularly to expand coverage in rural and retirement segments. They emphasized that policy continuity and updated tax limits reflecting rising incomes could drive disciplined participation and protection.
In general insurance, health coverage remains a priority, with calls for stronger domestic reinsurance, catastrophe risk frameworks, and regulatory stability to support innovation. Executives stressed accelerating digital infrastructure like the National Health Claims Exchange and Bima Sugam to reduce costs, fraud, and administrative friction, while promoting advanced technologies such as AI-led risk scoring, telematics, and satellite-based property assessment to enhance efficiency.
The industry also highlighted climate and MSME resilience, recommending a National Catastrophe Risk Pool, sovereign catastrophe bonds, and targeted support for parametric and micro-insurance products. Premium financing and digital lending reforms were cited as critical to expanding coverage without liquidity stress. Leaders said a forward-looking Budget treating insurance as essential social and economic infrastructure could deepen penetration, strengthen financial protection, and support inclusive growth.
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