India’s recent insurance reforms have increased the Foreign Direct Investment (FDI) limit from 26 to 49% in the insurance sector. Between 2 and 10 USD billion of new FDI flows is expected to enter the market, with the potential to increase participation from currently low penetration rates (3% GDP), product innovation, improve risk management, and support India’s significant infrastructure financing requirements.
Over the next 12 months, Earth Security will be supporting insurance companies in India and globally, and Indian policymakers to identify opportunities for new insurance products to support the scaling up of low-carbon investments in energy, agriculture, transport and other high-growth sectors.
At the same time, India is highly exposed to climate change. Agriculture is especially vulnerable to climate change, and its energy sector is highly carbon intensive. India's commitment to 266 gigawatts (GW) of renewable energy by 2020 and pledge to secure USD 1.2 billion in 100 new smart cities indicates its commitment to an ambitious low carbon growth path.
The project
Supported by the British Deputy High Commission in Mumbai, Earth Security will focus on the opportunities of a growing insurance market with options for the sector to support a low-carbon transformation in key sectors like energy, agriculture and infrastructure, through de-risking instruments and asset investments.
Given the increased market interest and changes to FDI, the project will also support global insurance companies interested in working in the Indian market to leverage these opportunities as part of their market proposition in India.
Through the project, Earth Security will:
- Build capacity for innovation: Provide the innovation research, insurance sector intelligence, and stakeholder convening to enable Indian insurance companies to identify insurance innovations and financial instruments that can support India’s decarbonisation and climate resilience goals. It will focus on three key sectors: renewable energy; climate smart agriculture and urban infrastructure.
- Focus on new products and business models: Propose a range of insurance market opportunities to scale up low carbon investments across key sectors (risk management and modelling, product and premium innovations, investment and risk coverage) through which international and domestic insurance companies can support climate and energy resilience goals in India either individually or as part of joint ventures.
- Convene insurance companies and policy-makers to collaborate: Design and lead a dialogue of insurance companies in India, global insurance companies with an interest in the Indian market, and Indian policy-makers, to foster collaborative opportunities to implement the market opportunities identified.
This project is supported by the UK Prosperity Fund.
Ripple effects across supply chains
Illuminates how challenges like water scarcity, climate change, and land degradation generate cascading impacts across global supply chains and investment portfolios.
Integrated systems analysis
Connects environmental constraints, demographic trends, and governance dynamics to assess how they interact to influence national and sectoral investment stability—enabling investors to anticipate emerging risks and strategic responses.
Country dashboards & sector insights
Delivers tailored intelligence for high-growth sectors across critical production and consumer markets—pinpointing pressure points that signal both risk exposure and investment opportunity.
Visual storytelling through data
Employs cutting-edge radial graphics inspired by the planetary boundaries framework. Multi-axis indicators make complex systems data intuitive and actionable for decision-makers driving strategic capital allocation.
Explore the reports
The Earth Security Index Reports provided in-depth analysis of critical themes across selected industries and market geographies, enabling investors to anticipate and respond to emerging global dynamics. Download and explore the full Earth Security Index reports:
