India, Jan. 31 -- One cannot doubt that the Indian insurance sector grew at a robust pace, stands at a pivotal juncture, and has matured into one of the economy's deepest institutional pools of long-term capital. However, the Economic Survey (2025-26) warns that internal operational dynamics pose a "risk to the core financial strength of insurers." For example, it states that private life insurers, despite robust topline growths, have seen their net profit stagnate, as margins are compressed. The non-life sector faces high combined ratios, which forces a "heavy reliance on investment income (generally from stocks) to subsidise operations, a strategy that exposes the sector's bottom line to capital market volatility." In both cases, there ...