General insurance is witnessing meaningful, positive shifts: SBI General Chief Jha

The year 2025 witnessed important developments. What are the regulatory trends you expect in 2026?

The regulators are actively working on several initiatives, including the implementation of a risk-based capital (RBC) framework and the introduction of the IFRS 17 accounting system. This could be the first major regulatory change. All insurers have been advised to prepare for this transition and we have appointed a consultancy firm to support us in this. The framework of IFRS 17 is expected to be beneficial for the industry as it provides greater transparency and is likely to improve visibility of profitability across segments. The changes offer supervisors more flexibility. This should enable the sector and regulators to work together on solutions that ultimately benefit customers. Overall, these regulatory developments are expected to have a positive impact on the non-life insurance sector.

Insurers are now entering new waters. How do you see the shifts?

On the industrial side, we are already witnessing meaningful shifts. Customer demand is broadening from traditional coverages like healthcare and auto to areas like cyber risk and emerging industries as risks become more complex and ubiquitous. Insurers are responding with expanded offerings and greater use of data and analytics to effectively price and manage these risks. Technology will also be a defining force. We expect digital transformation to deepen, with tools like advanced analytics and AI becoming core to underwriting, claims and customer engagement, enabling faster, more personalized interactions. Retail penetration will continue to rise as digital distribution gains momentum, even in underserved markets. Overall, the combination of regulatory clarity, innovation in risk solutions and customer-centric digital experiences will shape the industry’s journey to 2026 and beyond, supporting sustainable growth and greater insurance adoption across India.

Can you identify one or two key challenges for the general insurance industry going forward?

One of the key challenges is the issue of Input Tax Credits (ITC). However, we expect that increasing volumes in health insurance will help mitigate its impact. Another key challenge arises from emerging climate-related risks. The frequency of cyclones, floods and other extreme weather events has increased in recent years due to global warming. The industry must develop protection products for customers while strengthening underwriting skills to manage these evolving risks. Emerging risks such as cyber threats are also critical. Regulators and the government expect insurers to provide solutions to address these risks. For example, last year we successfully launched parametric insurance coverage in Nagaland, and similar innovative products will be needed across the industry. Another concern is the underprotection in certain segments. About 56 percent of vehicles remain uninsured, and a significant portion of the population, often referred to as the “missing middle,” lacks health insurance. While these challenges are significant, they also present new opportunities for the industry to innovate, expand coverage and reach underserved populations.