Mr. Rakesh Jain, CEO, IndusInd General Insurance:

As India approaches the Union Budget 2026–27, we stand at a pivotal moment where economic ambition and risk preparedness must advance hand in hand. With the nation witnessing rapid formalisation, digital expansion, and rising consumer expectations, general insurance is no longer a supplementary financial product it is a foundational pillar of resilience from economic volatility for households, businesses, and national infrastructure. The Budget presents a critical opportunity to strengthen this pillar by improving affordability, expanding coverage, and creating an environment conducive to long-term, innovation led growth. 

As we approach the Union Budget 2026–27, the general insurance industry stands at an inflection point where last year’s landmark reforms such as the GST exemption on health insurance policies, stricter time bound cashless claim norms, and the broader legislative push toward affordability and transparency have set a strong foundation for deeper transformation in the year ahead.

Health insurance, now the core of the general insurance market, needs policy support to counter rising medical inflation and enhance access, especially for vulnerable groups. Similarly, India’s evolving mobility and infrastructure ecosystems demand sophisticated, future ready risk solutions backed by stable regulation, stronger domestic reinsurance capacity, and clear catastrophe frameworks. 

Significant focus on insuring houses and SME/MSMEs is also critical to ensure that the asset and lifestyle creation of India is not at risk due to physical or economic volatility. With rising climate linked events, rapid urbanisation, and increasing asset ownership across Tier 2 and Tier 3 regions, home insurance traditionally underpenetrated requires policy incentives, tax benefits, and simplified product frameworks to drive mass adoption and strengthen household resilience. 

Building on recent reforms, the sector now needs the Budget to focus on three decisive priorities that can shift the industry from reform to measurable results.

First, India must double down on digital rails that cut friction, fraud, and administrative costs. The National Health Claims Exchange (NHCX) requires full funding and a time bound, nationwide rollout to enable real time data exchange, while Bima Sugam, launched in 2025 and expected to become fully operational in 2026, must be fast tracked to deliver seamless e KYC, e policy issuance, and a unified service window for customers and intermediaries. Standard APIs, transparent claims workflows, and interoperable digital architecture across health, motor, home, and commercial lines will meaningfully reduce costs from purchase to payout. 

Second, strengthening domestic reinsurance capacity and ensuring stable long term regulatory frameworks will be essential for supporting India’s expanding infrastructure, mobility, cyber, and property risk landscape. Incentives to build homegrown risk capital, promote innovation driven underwriting, and support early stage technologies such as telematics, AI led risk scoring, and satellite based property assessment will accelerate industry maturity. 

Third, India must build climate and MSME resilience at scale through a National Catastrophe Risk Pool, which has become increasingly urgent amid rising urban floods, cyclones, and heat related losses. The Budget should also enable India’s first sovereign or state backed catastrophe bond via GIFT IFSC and provide viability gap funding for micro insurance and parametric products in high risk districts, ensuring meaningful protection for vulnerable communities, homeowners, and small businesses. As insurers rapidly scale AI, telematics, cyber risk modelling, and risk analytics capabilities, targeted Budget support for cybersecurity, data governance infrastructure, and insurance focused workforce skilling will be essential to ensure innovation remains safe, transparent, and accountable. 

A forward looking Budget that positions general insurance as essential economic and social infrastructure anchored in digital enablement, affordability, home and MSME protection, and climate risk financing can significantly deepen insurance penetration and support the nation’s long term trajectory of inclusive and resilient growth.