The World Bank's (WB) latest Financial Sector Assessment (FSA) report on India acknowledges that India's insurance sector development has been in line with the peers, says the insurance regulator IRDAI in a media statement.
The press release said, “WB’s graded assessment found an overall sound level of observance of Insurance Core Principles (ICPs) reflecting India’s commitment to global best practices and a resilient insurance sector. The report mentions licensing, suitability requirements, enforcement powers, and public disclosure as areas of strength.”
The statement also said, “WB acknowledged that India’s world-class Digital Public Infrastructure and government programmes have significantly improved access to a wider range of financial services for both men and women. Suggestions have been made for further boosting account usage, especially for women, and to facilitate access to wider range of financial products for individuals and MSMEs.
“Under Climate Risk analysis, WB highlighted that the agriculture and banking sectors remain resilient to short-term climate shocks; however, granular data and adaptive measures are needed, as localized risks, prolonged agricultural shocks, and a difficult low-carbon transition could still put financial strain. They recommended that scaling up of climate-related investment, including the development of a Sustainable Finance Roadmap and a national Climate Finance taxonomy. This may help domestic investors.”
The FSA report was released following a comprehensive and in-depth analysis of India’s financial sector, under the Financial Sector Assessment Programme (FSAP), a joint program of the International Monetary Fund and the WB. Since September 2010, the exercise has become mandatory for jurisdictions with systemically important financial sectors.
Based on an assessment carried out during 2024, the WB released the India-FSA report on their website on 30 October 2025.