Insurance is not just a tool for mitigating risks: it is a crucial instrument for driving economic development. By reducing financial risks, insurance paves the way for innovative ideas and investment opportunities in new sectors.

This understanding is already evident in India, where substantial investments have been made in insurance with the goal of reducing risks. Given its massive population, the size of India’s insurance market is expanding significantly. Insurance now contributes approximately 3% to India’s Gross Domestic Product (GDP). According to Exo Insurance Information Services Limited, the premium collection from non-life insurance in India has surpassed $20 billion.

Knowledge and Technological Innovation

The World Intellectual Property Organization (WIPO) publishes the Global Innovation Index (GII) annually, ranking countries based on innovation and discoveries. This index assesses nations on factors such as the number of institutions, human resources and research, infrastructure, market and business sophistication, and knowledge and technology outputs.

In the insurance sector, creativity plays a significant role. Globally, the United States ranks first, while the UK holds fifth place. Within Asia, India is ranked 39th, whereas Nepal is positioned at 109th. In South Asia, India leads in innovation, while Singapore, ranked 4th globally, is the leader in Southeast Asia.

India has made significant strides, improving its ranking from 60th in 2017 to 39th in 2024, thanks to remarkable progress in knowledge and technology. In contrast, Nepal has remained stagnant at 109th during this period.

Increasing Complexity in the Insurance Sector

At the start of the 20th century, insurance was a relatively simple industry. It focused primarily on traditional communication, economic instability, newly established regulatory bodies, and basic financial institution ratings. However, by the mid-20th century, insurers became the focal point of the sector, and additional complexities such as social media, loss assessment, the advent of the internet, and geographical considerations emerged.

Today, the insurance sector faces even greater complexities, with factors such as insurtech, climate change, post-crisis regulations, easy access to information, and the Internet of Things shaping its landscape. This growing complexity underscores the need for innovation and creativity at every stage, from products and processes to services and business strategies.

Rapid Growth of India’s Insurance Market

India’s insurance market is growing faster than projected. The country’s expanding economy, coupled with its growing population, plays a pivotal role in this growth. Additionally, the active participation in innovation further strengthens this trajectory.

According to Andrea Keenan, Executive Vice President and Chief Strategy Officer at AM Best, the potential for revolution and transformation in the insurance sector lies within its very DNA. Her remarks were made during the Global Reinsurance Summit 2025 Mumbai.