India today is the world’s fourth-largest economy and is projected to cross USD 5 trillion in the coming year, with GDP expected to reach USD 7.3 trillion by 2030, according to the Press Information Bureau. This growth is powered by millions of households, small businesses, farmers, traders, and entrepreneurs who take calculated risks every day. Insurance enables this risk-taking by cushioning setbacks and allowing individuals and enterprises to remain focused on their aspirations. In this sense, insurance becomes an enabler of constitutional rights.
The general insurance sector has itself undergone a meaningful transformation in recent years. Regulatory reforms, greater capital availability, and a sharper focus on policyholder interests have strengthened the sector’s overall ecosystem, empowering its people and positioning it as a pillar of resilience in the broader economy. Insurance today is a critical enabler of stability in a rapidly evolving economy.
This role becomes particularly evident in the face of rising natural catastrophes. Since 1900, India has experienced 764 disasters, with 361 occurring between 2001 and 2022 alone, according to data from the State Bank of India. In 2023, natural disasters resulted in economic losses of USD 12 billion in India, significantly higher than the ten-year average of USD 8 billion, as reported by Swiss Re. As such events become more frequent and intense, the financial strain on households and public finances increases.
Insurance plays a crucial role in easing this burden by providing timely financial support and enabling quicker recovery. Evidence from global experience reinforces this impact. Following Hurricane Katrina in the United States, insured households were 37 per cent more likely to rebuild, according to the U.S. Department of Housing and Urban Development. Unlike disaster aid, which can be limited or delayed, insurance pay-outs provide immediate liquidity, allowing families and businesses to rebuild without exhausting savings or diverting resources meant for education, healthcare, or future investment.
Insurance is equally integral to India’s infrastructure ambitions. Large national projects spanning roads, ports, power, and urban development require comprehensive risk management across construction, operational, liability, and environmental exposures. Beyond providing coverage, insurers act as long-term institutional investors, channelising premiums into government securities and infrastructure assets that support capital formation. Instruments such as surety bonds are also gaining traction as alternatives to bank guarantees, improving capital efficiency for contractors and accelerating project execution.
Additionally, the government’s flagship schemes, such as Pradhan Mantri Jan Arogya Yojana, Pradhan Mantri Fasal Bima Yojana, and Pradhan Mantri Suraksha Bima Yojana, are clear expressions of trust in insurance as a pillar of social security, translating constitutional intent into tangible protection. Equally vital are our MSMEs, the lifeblood of India’s economy. These enterprises contribute nearly 30 percent to our GDP, over a third to manufacturing, and close to half of our exports. Yet, they often remain the most vulnerable in the face of unforeseen calamities. As an industry, we must continue innovating and developing insurance solutions that extend protection to MSMEs.Self-employed and gig workers are powering a new era for India. With 7.7 million already part of the gig economy in 2020–21, and numbers expected to reach 6.16 crore by 2047, their contribution is shaping our nation’s future. However, challenges such as health risks, income disruptions, and climate events, such as heatwaves and heavy rainfall, persist. By extending timely insurance solutions, we can protect these workers and empower them to drive India’s progress with renewed confidence and resilience.
Technology is accelerating this impact. Digital onboarding, faster claims processing, data-driven underwriting, and simplified servicing are making insurance more accessible and transparent. While India’s insurance penetration remains at just 3.7%, this represents a significant opportunity to deepen coverage, strengthen awareness, and enhance financial resilience across households and enterprises.
As India strides ahead on its remarkable growth journey, the true measure of progress will not be in the speed of expansion alone, but in the consistency with which we sustain momentum amidst uncertainty. Our ability to bounce back stronger in the face of adversity will define the resilience of our nation. With a government that listens, a regulator that looks ahead, and an industry council committed to collective betterment, I am confident that we are building a future where a flood does not cripple a small enterprise, a medical emergency does not wipe out a family’s savings, and disruptions do not derail long-term aspirations. This is when we truly secure the people and preserve their fundamental rights.
As we envision “Insurance for All by 2047,” it is not merely about protection, but about enabling confidence, ensuring that every citizen can march forward with security and optimism. Just as our Constitution laid the foundation for our rights, comprehensive insurance coverage will lay the foundation for our collective resilience, the cornerstone of India’s journey towards becoming a true global superpower.
(The author Dr. Tapan Singhel, MD and CEO, Bajaj General Insurance Limited (formerly known as Bajaj Allianz General Insurance Company Limited)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)