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

2025 witnessed major regulatory developments. What trends do you anticipate in 2026?

Regulators are advancing initiatives such as adopting a risk-based capital (RBC) framework and implementing the IFRS 17 accounting standards. These changes aim to enhance transparency, improve profitability visibility across segments, and offer regulatory flexibility. This collaborative framework between insurers and regulators is expected to benefit customers and drive positive industry growth.

How is the insurance industry adapting to current shifts?

Customers are diversifying their coverage needs beyond traditional products like health and motor insurance, venturing into cyber risk and specialized business lines. Insurers are leveraging data analytics, AI, and digital tools to optimize underwriting, claims processing, and customer engagement. This technological evolution, coupled with expanding digital distribution channels, will fuel retail penetration and support sustainable growth in underserved markets.

What are the top challenges for the general insurance sector?

The input tax credit (ITC) issue remains a hurdle, though rising health insurance volumes may offset its impact. Climate-related risks—such as cyclones and floods—demand innovative underwriting approaches and parametric products like those pilot-tested in Nagaland. Additionally, under-insurance persists, with 56% of vehicles and significant portions of the population lacking coverage. Addressing these gaps presents opportunities to innovate and broaden protection.