RGA's Sunil Sharma tells Asia Insurance Review that life and health reinsurers in India play a crucial role in making insurance more equitable, sustainable, and available across diverse income groups.
The Indian insurance industry is transforming. With rising incomes, changing demographics, and rapid digital adoption, the sector has the opportunity to make insurance available across the country. The insurance penetration in India, however, remains low at around 3.7% compared to the global average of more than 7% of GDP, indicating significant untapped potential of the market.
To address this untapped potential, the government and the market regulator Insurance Regulatory and Development Authority of India (IRDA) have launched the Insurance-for-All by 2047 initiative aligning with India’s 100th year of independence. Achieving this vision demands a coordinated push across distribution, product design, affordability, and digital infrastructure.
Industry leaders and IRDAI have emphasized rethinking distribution, diversifying products, strengthening collaboration and research to close the coverage gap. Asia Insurance Review spoke to RGA India CEO Sunil Sharma on how reinsurers can help the Indian insurers.
Mr. Sharma said, “India is a geographically vast country with its population spread across diverse regions, which creates several challenges for the insurance sector.
Mr. Sharma said, “With low penetration, trust issues, rising costs, and the need for digital transformation, reinsurers can bring both capital strength and global expertise to support the industry’s growth.”
Reinsurers can help insurers design simpler, affordable, and flexible products that meet diverse customer needs, including wellness-linked and microinsurance solutions.
By sharing risk and offering advanced analytics, reinsurers can improve underwriting, reduce claim volatility, and strengthen financial stability.
Drawing on global best practices, reinsurers can guide insurers in digital distribution, customer engagement, and updates on regulatory practices.
Reinsurers can support insurers with training, talent development, and technical knowledge in areas like AI, cybersecurity, and data analytics.
Reinsurance can support insurance companies with seamless risk and financial solutions while balancing the onboarding of customers and risk management.
Reinsurers like RGA regularly collaborate with healthcare providers, FinTechs, and digital platforms to embed insurance into everyday life and make it more proactive and wellness oriented.
Reinsurance can offer capital relief by helping insurers respond to regulatory capital requirements, enabling growth and innovation. In addition, many reinsurers invest directly in local markets, bringing foreign capital and expertise that strengthen the domestic insurance ecosystem.
Speaking about the Indian health insurance sector Mr. Sharma said it has traditionally focused on paying for treatment after illness strikes, rather than promoting wellness and prevention. As reinsurers, we can play a pivotal role in driving this change by:
Speaking about FDI in insurance, which has now been liberalised to 100%, Mr. Sharma said, “The liberalisation of India’s insurance sector is a welcome signal of openness and long-term commitment to global capital. For us, this moment presents a unique opportunity to shape the industry’s future by partnering, diversifying and providing global expertise. Liberalised FDI also helps with the following.”
Partnering and collaborating with insurers to drive product innovation, strengthen risk management frameworks, and improve capital efficiency.
Diversifying the risk by helping design products that balance profitability with inclusivity, reinsurers can support sustainable growth while addressing India’s significant protection gap.
Leveraging global expertise, reinsurers can guide insurers on best practices in underwriting, digital distribution, and customer engagement, helping to ensure that capital translates into long-term resilience and trust.
India’s young population gives the insurance industry a unique opportunity. While many countries are dealing with ageing populations, India has many people entering their earning years. Mr. Sharma said, “This is an advantage because insurers can reach customers early, build long-term relationships, and provide protection throughout their lives. The real test is whether insurers can make the most of this opportunity before the demographic edge fades.
“We need to develop and offer simple, affordable, and flexible products that appeal to younger customers, use digital platforms they already rely on, and communicate in ways that fit their lifestyle.
By acting quickly with technology, trust, and innovation, insurers can turn India’s youthful population into a strong base for long-term insurance growth.”
The insurance industry can actively motivate the younger population to adopt healthier lifestyles by emphasising the importance of preventive health. This means encouraging habits like balanced nutrition, regular exercise, and mental wellbeing practices. By promoting these behaviours early, we will not only build a culture of wellness but may also reduce long-term health risks.
“Insurers can use these behaviours of younger generation to offer incentives like discounts on premiums, wellness rewards, or access to fitness programmes to those who demonstrate commitment to healthy living,” said Mr. Sharma.
He said, “Digital platforms, data analytics, automation and mobile access will play a key role in making insurance simpler, faster, and more affordable. From initiatives like Bima Sugam, a unified digital marketplace for insurance to AI-driven risk assessment and vernacular mobile apps, technology helps to ensure that even rural and underserved communities can access protection with ease and trust.
“Insurance products need to be simple, relevant, and easy to understand. Need-based coverage with well-defined and flexible riders can meet customers at different life stages, while easy communication through local languages, icons, and short videos can help them grasp key details about the product.”
RGA provides expert guidance in responding to market challenges across India. We look forward to working with you to discuss your options and considerations in more detail. Contact us.
