This week in insurance, the major story is India's Insurance Amendment Bill 2025, clearing Parliament to allow 100% Foreign Direct Investment (FDI), boosting growth, empowering the regulator (IRDAI), and easing foreign ownership, though implementation needs watching.

India: Regulatory Reforms Take Center Stage

Insurance Amendment Bill 2025

The Parliament's approval of the Insurance Amendment Bill marks a watershed moment for India's insurance sector. The bill introduces several transformative changes:

Impact Analysis

The 100% FDI rule is expected to:

• Attract Global Capital: Major international insurers likely to increase Indian investments
• Improve Governance: Global best practices in risk management and compliance
• Enhance Product Innovation: Advanced insurance products and digital solutions
• Boost Market Competition: Better pricing and customer service

Blockchain technology is revolutionizing insurance claims processing by creating transparent, immutable records that eliminate fraud and accelerate settlements.

The Insurance Regulatory and Development Authority of India (IRDAI) has introduced new guidelines that significantly impact technology-driven insurance providers.

Internet of Things (IoT) devices are transforming property insurance by providing real-time monitoring and preventive alerts, significantly reducing claim frequencies.

The insurance industry in February 2026 is marked by the commencement of major regulatory reforms in India and a shift toward structured war risk coverage in global markets.

Major Industry Updates (February 2026)

India's "Insurance for All" Reforms

On 5 February 2026, the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025 officially commenced. This landmark reform includes the full operationalisation of 100% foreign investment in Indian insurers, aimed at fostering competition and closing the protection gap.

Expansion of War Risk Insurance

In late February 2026, the global market saw a shift toward more structured war risk coverage, particularly for Ukraine. A new reinsurance facility supported by the US International Development Finance Corporation (DFC) was finalised to provide up to $25 million in capacity for SMEs and private property.

Corporate Performance

• PB Fintech reported a 165% growth in net profit (?189 crore) for the December quarter (announced February 2), driven by strong health and life insurance policy sales.
• ICICI Lombard received a revised "Positive" outlook from AM Best on February 27, 2026, reflecting its strong market position and diversified underwriting portfolio.

Hiring Trends

A February 2026 labor market survey by Aon and Jacobson revealed that 50% of insurance companies plan to increase headcount over the next year, with 65% of life and health insurers actively looking to expand.

Historical Comparison (February 2025 vs. February 2026)

In contrast to the growth push in 2026, February 2025 saw a temporary slump:

• Life insurers reported an 11.6% year-on-year drop in new business premiums (NBP), largely due to a 22% decline at LIC.
• Non-life sector dipped 2.82%, though standalone health insurers grew 7.8%.

Market Outlook & Valuations

As of late February 2026, some insurance stocks are considered undervalued. For instance, Hamilton Insurance Group was noted for its low price-earnings ratio (5.7) compared to the industry median (13.3).