The insurance industry is expected to see greater adoption of parametric insurance, alongside technology and AI enabling sharper underwriting and more precise pricing
FinTech BizNews Service
Mumbai, 26 December 2025: CY2025 marked a period of meaningful regulatory evolution for the insurance sector, including GST rationalisation and Parliament’s approval of 100% FDI.
Dr. Sandeep Dadia, CEO and Country Head, Lockton India, shares important views on the fast-changing landscape of the insurance sector:
“2025 brought greater clarity to the evolving risk landscape facing the insurance industry. There was a sharper focus on emerging and systemic risks, particularly as digital acceleration increased exposure to cyber threats, reinforcing the need for more comprehensive coverage and stronger risk-mitigation strategies. Climate resilience also moved to the forefront, with large-scale natural catastrophes globally exposing persistent protection gaps and underlining the broader economic and social impact of underinsurance. At the same time, global uncertainty influenced risk assessments, leading to higher costs across marine, cargo and hull insurance.
In FY26, the focus has clearly shifted towards customer-centricity, product innovation and data-led underwriting driving affordability, expanding penetration and supporting the industry’s long-term growth agenda .
As the industry looks ahead to 2026, India is expected to continue standing out as a resilient economy. Increased capital inflows and closer alignment with global best practices are expected to support the development of products aligned with evolving lifestyles and increasingly complex risk exposures. The industry is also likely to see greater adoption of data-led solutions such as parametric insurance, alongside technology and AI enabling sharper underwriting and more precise pricing. This transition into 2026 comes with valuable learnings and a more flexible regulatory environment, setting the stage for a phase defined by innovation, capital efficiency and more disciplined risk management.”
