Health insurance segment is continuing to drive growth in the non-life industry and has crossed the milestone of ₹1 lakh crore mark in the current fiscal year ending January 2025 compared to the same period last year.
As per the latest Insurance Regulatory and Development Authority of India (IRDAI) and the General Insurance Council, health premium reached ₹1,00,258 crore during April 2024-January 2025 period as against ₹90,785 crore registered in the same period of the previous financial year.
The total gross direct premium underwritten in the FY25 in the first 10 months stood at ₹2,59,211 crore as against ₹2,40,705 crore in the corresponding period of last fiscal marking a growth of 7.7 per cent.
According to CareEdge Ratings, public sector general insurers’ January 2025 figures continue to outpace their private peers primarily due to changes in the reporting requirements.
“However, private insurers’ growth has consistently outpaced their public peers for the YTD period. This growth can be primarily attributed to retail health, and motor offsetting the weakness in the commercial sector,’‘ it said in a report.
The overall market share of private non-life insurance companies has witnessed a sustained increase to 65 per cent for YTDFY25 from 63 per cent in FY24 and 61 per cent in FY23, highlighting the persistent growth differential between the public and private sectors, the report added.
In health, the retail segment despite growth reducing compared to the previous periods has continued to be the fastest growing segment in January 2025, as well as for YTD FY25 indicative of sustained demand. The group health segment remains the largest segment.
The industry expects the growth momentum to further strengthen in the next financial year. “If the Bima Vistaar, all in one affordable insurance product, manages to appeal to the larger sections of the society, it will significantly push health premium further in the next financial year driven by the combined positive impact of other two components of Bima Trinity – Bima Vahak and Bima Sugam,’‘ said a CEO of a private life insurance company.
