India's life insurance penetration has declined for the third consecutive year, falling to 2.7% of GDP in FY25, according to Irdai's annual report. Overall insurance penetration remained flat at 3.7% of GDP, with the non-life segment also unchanged. This data emerges as the government raises the FDI limit in the insurance sector to 100% and exempts GST on individual life and health policies, aiming to boost penetration and attract foreign investment.