Dr. Debashish Panda, Chairman, Insurance Regulatory and Development Authority of India,
Captains of Indian and Swiss Industry,
My colleague and Deputy Chief of Mission, Mr Anoop Dhingra,
Distinguished guests,
Ladies and Gentlemen,
A very Good Morning to you all,
We are living in interesting times. Many parts of the world are witnessing turmoils. There are wars and disruptions. Democracy and rule of law face new challenges every day. Adverse effects of climate changes are causing havocs in many parts of the world.
Yet we remain hopeful of a shared prosperous future. There remain shining examples like Switzerland and India which offer ray of hope to securing global good and sustainable development.
One of the great successes of the present time is story of Indian democracy, the mother of all democracies. In the world’s biggest electoral exercise, over 650 million Indians reaffirmed their abiding faith in democratic principles and ethos. The results of 4 June showed the resilience of India’s democratic traditions and a rule-based society. Same was the story here in Switzerland where general elections were held peacefully in October last year.
Not only that our two countries individually are the beacons of peace globally but also share common values which allow us to collaborate and cooperate together.
India-Swiss bilateral ties are in a sweet spot today. We signed Trade and Economic Partnership Agreement with EFTA countries led by Switzerland on 10th March 2024 in New Delhi after arduous negotiations lasting 16 years. This is a visionary agreement which provides a definite road map and framework for our two industries to find mutually beneficial partnerships.
New avenues are opening up with this historic development. Only yesterday evening, I flagged off the inaugural Air INDIA flight from Zurich to Delhi. This happened after a hiatus of 27 long years. Air connectivity so much needed for smooth trade and economic engagement received a major boost with this.
I can continue to talk about new positive developments in our bilateral ties with Switzerland. Today’s dialogue is another step in exploring and leveraging our growing and mutually beneficial bilateral ties.
I compliment IRDAI and Swiss Re for organizing today's event. I also want to thank Industry leaders especially in insurance sector for joining today.
Friends, I will briefly touch upon the reforms undertaken by India to strengthen this ecosystem and the opportunities it presents for global investors and collaborators.
But before I do so, let me congratulate Zurich Insurance for being the front runners in seizing opportunity in Indian insurance space with the largest ever FDI by a global insurance company in non-life insurer in India. Some recent key Swiss investments included The company last year acquired 51% stake in India's Kotak Mahindra General Insurance for an amount of US$ 488 million.
Banking, Financial, and Insurance (BFSI) sector forms the backbone of our economy. These are driving force in ensuring financial inclusion of millions of people.
Our Insurance industry is one of the premium sectors experiencing consistent upward growth. In terms of total premium volumes, India is the tenth largest market globally and second largest of all emerging markets, with an estimated market share of 1.9%. It is expected that premiums will grow by an average 9% p.a. in real terms over the next decade. India is thus poised to emerge as one of the fastest-growing insurance markets in the coming decade. Speaking of life insurance, India is the fifth largest market, growing at over 30% annually and is expected to reach USD 200 billion by 2027.
In the last decade, the insurance sector has attracted substantial FDIs amounting to nearly USD 6.5 billion, driven by the Government's progressive policy liberalisation and relaxation of overseas capital flow regulations.
Friends, Indian Government has taken several initiatives to boost the insurance industry. In the interim budget of 2024-25, the Government announced an investment in post-harvest activities to provide financial aid to 118 million farmers. These initiatives are not only driving the growth of the insurance sector but also ensuring that the benefits of this growth are reaching all sections of society.
The Indian Government's flagship initiative for crop insurance, Pradhan Mantri Fasal BimaYojana (PMFBY), has led to significant growth in the premium income for crop insurance. It is the world's largest crop insurance scheme in terms of enrollment and the world's third-largest scheme in terms of gross premium. This scheme is being implemented by several insurance companies both from Public sector and private sector.
Ayushman Bharat, the world's largest health insurance scheme fully funded by the Government, aims to provide health coverage of about USD 6,000 per family per year for secondary and tertiary care hospitalization. It has more than 230 million beneficiaries and a network of 26,000 empanelled healthcare providers, making it more accessible and affordable.
The insurance industry in India has witnessed an impressive growth rate over the last two decades, driven by greater private sector participation, expansion of distribution capabilities, and substantial improvements in operational efficiencies. I congratulate our insurance regulator, IRDAI, for taking measures and initiatives towards boosting the insurance penetration in India and their 'Insurance for All' mission by 2047. This mission is being implemented through a combination of regulatory reforms, financial literacy programs, and innovative product offerings by industry players.
Friends, the Indian economy is growing fast. India is emerging as the global manufacturing hub and an epicentre of digital transformation. India's robust IT industry is spearheading this digital transformation.
With an aspiration to become a 30 trillion-dollar economy by the 100th year of our independence, the Government has set for itself an ambitious agenda to strengthen macro-economic stability and provide a solid impetus for growth and job creation. It envisions developing a knowledge-based and technology-driven economy.
India is witnessing fintech revolution through an ecosystem of start-ups, established financial institutions, and tech-savvy consumers. This is further enabling the growth of insurance sector. The surge in innovation has democratized financial services, making them more accessible and efficient. The fusion of finance and technology has revolutionized how we manage, invest, and transact our money. From Unified Payment Interface to mobile wallets, the ease and speed of digital transactions have become integral part in the lives of millions. The digitization of payments has paved the way for financial inclusion, reaching even the country's remotest corners.
The growth is supported by a series of schemes launched by the Government to create an enabling environment. Schemes such as the PM Gati Shakti Plan, the National Asset Monetization Pipeline, Labour Reforms, and Goods and Service Taxes have been launched to ensure sustainable development over the years.
The great India story has generated considerable enthusiasm among global businesses including here in Switzerland. The recently signed FTA is a win-win proposition for India and EFTA countries. Like other sectors, Swiss insurance companies stand to gain in terms of greater market access for its services in India.
Friends, during my interactions at business events and seminars in the last few months, I had the opportunity to engage with key business stakeholders and potential investors. There is a growing interest in India and its potential as an investment destination. Leading business entities like Swiss Re and Zurich Insurance which have tested the Indian market can motivate others on the basis of their positive experience. India is committed to consistently improve its business landscape through progressive policy reforms, reducing regulatory obstacles and enhanced infrastructure.
I invite Swiss companies to assess the exciting opportunities and invest in India through collaborations and partnerships to become a part of our growth story by leveraging our complementarities and strengths. Indian Embassy is ready to facilitate you in all possible ways.
I once again thank you all for participation in today's enriching discussions.
