The Government of India’s Ministry of Finance issued a note on the 2024 Financial Sector Assessment Program for India, highlighting the International Monetary Fund’s Financial System Stability Assessment released on February 28, 2025 and the World Bank’s Financial Sector Assessment released on October 30, 2025. In the World Bank assessment, India’s insurance sector is graded as having an overall sound level of observance of the Insurance Core Principles. The World Bank identifies licensing, suitability requirements, enforcement powers, and public disclosure as areas of strength for insurance supervision. Beyond insurance, the assessment points to a more resilient and diversified financial system since the 2017 FSAP and sets out recommendations including further strengthening credit risk management for banks and non-bank financial companies, developing an integrated approach to monitoring conduct risks in securities markets, scaling up climate-related investment supported by a Sustainable Finance Roadmap and a national climate finance taxonomy, and improving MSME credit data through comprehensive publication and an MSME data observatory.
Insurance Regulatory and Development Authority of India 2025-11-12
World Bank FSAP report finds India’s insurance sector shows sound observance of Insurance Core Principles
The Government of India’s Ministry of Finance highlighted the IMF’s Financial System Stability Assessment and the World Bank’s Financial Sector Assessment for India. The World Bank graded India’s insurance sector as sound in observing Insurance Core Principles, noting strengths in licensing, suitability requirements, enforcement powers, and public disclosure. Recommendations include enhancing credit risk management, developing conduct risk monitoring in securities markets, scaling climate-related investments, and improving MSME credit data.