Magnifying glass on an insurance policy. Photo: Vlad Deep / Unsplash

Sector 07

Insurance, Mutual Funds & Others

Insurance, asset managers and mutual funds, and other capital market intermediaries.

The sector at a glance

Where integrity risk sits in insurance.

Insurers and asset managers hold the public's savings on trust, and their regulators have raised the bar on how fraud and conduct risk must be governed. IRDAI's new fraud framework took effect in April 2026; SEBI's enforcement has reached the world's largest trading firms; the UAE's premiums are growing at double digits.

Market intelligence

India and the UAE & Dubai, in numbers.

Statistics and regulatory developments from government, regulator and industry sources. Each figure links to its source.

India

Record savings flows into mutual funds and insurance, matched by a tougher fraud and conduct regime.

₹82.6 lakh cr

mutual fund industry AUM, September 2026

Source: Kotak Neo, citing AMFI data

₹32,490 cr

record monthly SIP inflow, September 2026

Source: Kotak Neo, citing AMFI data

₹3.36 lakh cr

non-life gross direct premiums in FY26, up 9.2%

Source: IBEF

3.7%

insurance penetration in FY25

Source: IBEF

Regulatory and market updates

IRDAI fraud framework
The Insurance Fraud Monitoring Framework Guidelines, 2025 took effect on 1 April 2026, requiring an independent fraud monitoring committee and unit and extending duties to brokers, banks, hospitals and agents.Source: IndiaLaw
100% FDI in insurance
The FDI limit in insurance has been raised from 74% to 100% under the Sabka Bima Sabki Suraksha Act, 2025.Source: IBEF
SEBI market-abuse enforcement
SEBI's July 2025 interim order against the Jane Street group impounded about ₹4,843 crore of alleged unlawful gains.Source: Business Today

Risk map

The integrity risks we see most often.

Exposure ratings reflect BDI's casework and the current market and regulatory environment.

High exposure

Claims fraud

Inflated or staged health, motor and property claims, often with provider collusion.

High exposure

Mis-selling and distributor misconduct

Agents, banks and brokers selling unsuitable products or forging documents.

High exposure

Front-running and insider trading

Dealers and fund managers trading ahead of client orders.

Elevated

Vendor and third-party fraud

Hospitals, garages, surveyors and TPAs acting against the insurer.

Elevated

Cyber and data breaches

Policyholder and investor data exposed or sold.

Other challenges

Regulatory expectations

Boards must evidence a working fraud and conduct framework.

Distribution sprawl

Thousands of agents, banks and digital partners to monitor.

Data silos

Claims, policy and trading data rarely meet in one view.

How BDI helps

Each risk, matched to a response.

The practice that leads and the platform that keeps the record.

Risk	How BDI responds	Practice	Platform
Claims fraud	Claims investigations, provider and surveyor verification, and analytics.	01 · Forensic	Whistle Sentinel
Mis-selling and distributor misconduct	Distributor due diligence, mystery shopping and conduct investigations.	01 · Forensic 02 · Risk	Whistle Sentinel
Front-running and insider trading	Digital forensics, communications review and surveillance support.	01 · Forensic	Whistle Sentinel
Vendor and third-party fraud	Third-party risk programmes and contract governance.	02 · Risk	Pactinex