New Delhi has witnessed remarkable strides in social security over recent years, driven by a sharp rise in pension and insurance coverage across the nation. Finance Minister Nirmala Sitharaman unveiled these findings in the Economic Survey presented to Parliament on Thursday, underscoring the government’s push towards financial inclusion.
Regulatory bodies like the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA) have spearheaded transformative reforms. These efforts aim to extend protection to underserved populations, fostering a more inclusive financial ecosystem.
The PFRDA has established a robust multi-tiered pension framework. Key components include the market-linked National Pension System (NPS), the government-backed Unified Pension Scheme (UPS) launched in 2025, and schemes like the Employees’ Provident Fund (EPF) and Atal Pension Yojana (APY) designed for broader reach.
By December 31, 2025, NPS boasted 21.17 million subscribers with managed assets valued at ₹16.1 lakh crore. Over the past decade from FY15 to FY25, NPS subscribers grew at a compound annual growth rate (CAGR) of 9.5%, while assets under management (AUM) surged at an impressive 37.3% CAGR.
Similarly, since its inception in 2016, APY subscribers have expanded at a robust 43.7% CAGR, with AUM skyrocketing at 64.5% CAGR. These figures reflect a dynamic shift towards retirement security for millions.
Turning to insurance, the sector is evolving rapidly under the vision of ‘Insurance for All by 2047.’ IRDAI’s principle-based framework strengthens regulations, eases compliance burdens, and encourages innovation among insurers.
The ‘Sabka Bima Sabki Raksha’ amendments digitize processes and democratize access. In non-life insurance, health insurance now dominates, accounting for 41% of domestic premiums and overtaking motor insurance as the largest segment.
Net incurred claims in non-life rose over 70% from FY21 to FY25, reaching ₹1.9 lakh crore, fueled by health and motor claims. Life insurance remains dominant, holding 91% of total AUM and contributing 75% of premium income. Insurers paid out ₹6.3 lakh crore in benefits in FY25.
GST exemptions on life and personal health policies have made coverage more affordable. The ‘Sabka Bima Sabki Suraksha Act, 2025’ introduces long-awaited reforms, including 100% FDI, easing business operations and paving the way for sector expansion.
This progress signals a resilient future for India’s social security net, ensuring broader protection amid economic growth.