Mumbai
LIC Managing Director Dinesh Pant said the government’s decision to allow 100 per cent foreign direct investment in insurance has strengthened the role of regulators and improved oversight of the sector. He said recent announcements in Budget 2026 show clear intent to recognise insurance as a key driver of economic growth and a tool to reduce India’s protection gap.
Pant said the government remains focused on achieving the goal of Insurance for All by 2047. He added that policy steps such as the insurance amendment bill and GST changes underline the importance given to the industry. The amendment bill, cleared in December, allows 100 per cent FDI, lowers net worth requirements for insurers, and gives greater authority to regulators.
Pant welcomed the reduction of GST on individual life and health insurance from 18 per cent to zero, effective September 22, 2025. He said this move makes insurance more affordable and allows companies to pass on savings to customers. All individual life policies and health covers, including senior citizen plans, are now exempt from GST.
He said the government is also encouraging insurers to review cost structures and improve service quality, especially distribution expenses. Commenting on Budget 2026, Pant noted the rise in capital expenditure to Rs 12.2 lakh crore from Rs 11.4 lakh crore. He said high utilisation of capex supports infrastructure growth and has wider economic benefits.
On the outlook, Pant said GDP growth for FY27 is projected at 7.4 per cent. He added that despite global volatility and a weaker rupee, India’s economic fundamentals remain strong. He expressed confidence in term policy stability.
