Several major South Korean insurers are holding exploratory discussions about entering India’s insurance industry, according to three sources familiar with the matter. The talks involve Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, and Mirae Asset Financial Group, and include meetings with Indian insurers, advisers, and the Insurance Regulatory and Development Authority of India (IRDAI), the sources said.
The discussions are described as preliminary, with no formal proposals submitted so far. The sources requested anonymity, citing the private nature of the conversations. Reuters reported the companies have been assessing possible market-entry structures, including partnerships or acquisitions, and have engaged with the regulator as part of early due diligence.
If any transaction materializes, it would represent the first entry by large South Korean insurance groups into India’s domestic insurance market, Reuters reported. The interest comes as India’s policy environment has become more permissive for overseas ownership and as cross-border financial-sector activity has increased in recent months.
Non-Life And Life Lines Emerge As Separate Priorities
The sources said Samsung Fire & Marine and Hyundai Marine & Fire have been looking primarily at non-life insurance, while Mirae Asset has been weighing opportunities in life insurance. Reuters described Samsung’s regional footprint as including non-life coverage, such as vehicle, property damage, and liability policies, and noted that Hyundai Marine & Fire focuses on commercial insurance as well as health and auto cover.
Company comments indicated caution and no firm commitments. Hyundai Marine & Fire, identified by Reuters as South Korea’s second-largest non-life insurer, said it was not seeking to enter India immediately and was taking a measured approach, while also noting it had recently closed its liaison office in the country. The spokesperson added: “From a mid- to long-term perspective, we remain open to exploring a form of market entry when appropriate.”
Samsung Fire & Marine also emphasized that its position remains noncommittal, with a spokesperson saying the company had “not made any official plans or decisions regarding entry into the Indian insurance market.” Mirae Asset and IRDAI did not respond to Reuters’ requests for comment.
The exploratory push fits within a broader pattern of Korean investment in India. Reuters pointed to Korean involvement across sectors, particularly automobiles and electronics, and noted listings by Hyundai Motor and LG Electronics involving their India operations as examples of deepening ties between Korean corporates and Indian capital markets.
Policy Liberalization Adds Momentum For Foreign Entrants
The renewed interest in India’s insurance sector follows policy changes that allow full foreign ownership of Indian insurers, potentially reshaping how global groups structure market entry. Reuters has reported India’s parliament approved legislation lifting the foreign direct investment ceiling in insurance to 100% from 74%, a move intended to attract additional capital and support wider coverage.
Industry sources told Reuters that prospective entrants could pursue both “organic” expansion and “inorganic” options, such as buying into an existing insurer. The timing also intersects with preparations for reforms under a new legal framework that would grant the regulator legislative authority to set commission limits and order disgorgement of wrongful gains, according to Reuters.
India currently has about 60 insurers, with several international groups operating through joint ventures with local partners, Reuters reported, citing examples including Prudential Plc, Sun Life Financial, and AIG. The possibility of wholly owned operations, if pursued, could reduce the historical reliance on joint-venture structures and may intensify competition, though the market’s economics remain challenging.
Growth Potential Tempered By Penetration And Profitability Hurdles
India’s insurance market is sizeable, about $130 billion, Reuters reported, but it remains underpenetrated relative to many global peers. Insurance penetration, measured as annual premiums underwritten, stood at about 3.7% of GDP in 2024, leaving room for expansion if products and distribution broaden.
At the same time, Reuters reported structural frictions: high commissions compared with international standards and weaker profitability than global peers. A referenced industry analysis also pointed to profit margins below those of multinational insurers elsewhere in Asia, underscoring that scale alone does not guarantee attractive returns.
Related moves in adjacent parts of the industry suggest that foreign firms are seeking multiple pathways into India’s risk market. In a separate Reuters report, global reinsurers, including Lloyd’s of London, Samsung Re, and Korean Re, were reported to be seeking to expand through Gujarat International Finance Tec-City (GIFT City), a special economic zone promoted as an international financial hub. Reuters said about 14 global reinsurers were already present there, managing roughly $700–800 million in annual premiums, with the total expected to rise to $1.2–1.4 billion by March 2026.
