India's non-life insurance industry registered a 5.2% increase year-on-year in premiums to Rs 23,422.5 crore in June 2025, according to a report released by CareEdge Ratings on Wednesday.
This was lower than the 8.4% growth recorded in June 2024.
"The transition to the 1/n rule has impacted the industry's performance, resulting in a slowdown in health insurance growth to single digits and muted growth in the passenger vehicle (PV) segment, which was partially offset by renewals in the commercial lines," the report noted.
Despite the moderation in premium growth, non-life insurance premiums crossed the Rs 3-lakh crore mark in FY25, driven by supportive regulations, rising insurtech adoption, accelerating digitalisation, and an expanding middle class, the report said.
Moreover, the government's Bima Trinity push is poised to accelerate growth in the non-life insurance sector. Further, standalone health insurers are expected to maintain their dominance in the retail health space.
"At the same time, the trajectory of motor insurance will closely follow vehicle sales and the upcoming revisions to third-party tariffs. The proposed roll out of composite licences could reshape the competitive landscape in the medium term," Priyesh Ruparelia, Director of CareEdge Ratings, said.
"However, rising competition and global geopolitical uncertainties will remain crucial watchpoints for the sector," Ruparelia added.
This was lower than the 8.4% growth recorded in June 2024.
"The transition to the 1/n rule has impacted the industry's performance, resulting in a slowdown in health insurance growth to single digits and muted growth in the passenger vehicle (PV) segment, which was partially offset by renewals in the commercial lines," the report noted.
Despite the moderation in premium growth, non-life insurance premiums crossed the Rs 3-lakh crore mark in FY25, driven by supportive regulations, rising insurtech adoption, accelerating digitalisation, and an expanding middle class, the report said.
Moreover, the government's Bima Trinity push is poised to accelerate growth in the non-life insurance sector. Further, standalone health insurers are expected to maintain their dominance in the retail health space.
"At the same time, the trajectory of motor insurance will closely follow vehicle sales and the upcoming revisions to third-party tariffs. The proposed roll out of composite licences could reshape the competitive landscape in the medium term," Priyesh Ruparelia, Director of CareEdge Ratings, said.
"However, rising competition and global geopolitical uncertainties will remain crucial watchpoints for the sector," Ruparelia added.
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