The insurance sector in India has witnessed significant growth over the past few decades, evolving from a state-dominated industry to a competitive and dynamic market in open economy after liberalization. This paper is made an attempt to explore the major objectives like, to analysis the early history of insurance sector in India, growth, challenges and opportunities in present economic situation. This paper is based on the information collected through available secondary sources and literature reviews. The secondary sources include the reports collected from the, journals, articles, books, documents of various ministries and departments and organizations, papers, and websites used in this study. The proposed study mainly in descriptive in nature. This paper highlights data on life and non-life insurance premiums, insurance penetration, insurance density, and the number of insurers in the market. Life insurance premiums figures show the total annual premiums collected by life insurance companies. The value has steadily increased from ₹4.58 lakh crore in 2018 to an estimated ₹8.50 lakh crore in 2024, indicating growing awareness and demand for life insurance products. Insurance Penetration also rose from 3.69% in 2018 to an estimated 4.5% in 2024, reflecting improved access and adoption of insurance across India, though still relatively low compared to global standards. Insurance density indicates the average annual per capita insurance expenditure. It increased from USD 74 in 2018 to a projected USD 110 in 2024, showing that individuals are spending more on insurance, likely due to increasing income levels, financial awareness, and risk coverage needs. In this paper it is also highlighted the major challenges and opportunities in the insurance sector in India during liberalized economy.