Indian Non-Life Insurance Sector Experiences a Dip, Yet Remains Poised for Growth
India’s non-life insurance industry saw a slight downturn in February 2025, with premiums totaling Rs 21,747.6 crore, a fall of 2.8% compared to the 12.6% increase observed in February 2024. This is according to the most recent data released by CareEdge.
“The industry’s transition to the 1/n rule, slower growth in the private vehicle (PV) segment and weakness in commercial lines have impacted performance. However, this decline for general insurers was somewhat offset by the State-Associated Health Insurers (SAHIs),” explained Saurabh Bhalerao, Associate Director of CareEdge Ratings.
Despite this short-term decline, experts are confident the total premiums for the fiscal year 2025 will surpass Rs 3 lakh crore, driven by a favorable regulatory environment and the Bima Trinity initiative. The health insurance segment is expected to continue its strong performance, with SAHIs maintaining a leading position in the retail market. The motor insurance segment’s growth hinges on car sales and adjustments to third-party (TP) tariffs.
Priyesh Ruparelia, Director of CareEdge Ratings, stated, “CareEdge Ratings projects that the Indian non-life insurance market will likely expand at a rate of approximately 13-15% in the medium term.”
However, Ruparelia also highlighted that increased competition and global uncertainties could pose challenges to the sector.
