A recent CARE Ratings report said the sector’s performance was impacted by the transition to a new accounting rule, muted growth in the passenger vehicle segment and broad-based weakness in commercial insurance lines
The non-life insurance sector witnessed a moderation in the growth of gross direct premium underwritten in FY25 compared to the previous financial year. However, for the first time, the total premium across all non-life insurers exceeded ₹3 lakh crore.
According to data from the General Insurance Council, the gross direct premium underwritten by all non-life insurers—including standalone health insurers and specialised players—grew 6.2 per cent in FY25, reaching ₹3,07,612 crore, up from ₹2,89,652 crore in FY24. In contrast, FY24 had seen a higher growth rate of 13 per cent over FY23.
The total gross written premium for all non-life insurers rose 5.2 per cent to ₹2,58,092 crore (₹2,45,343 crore). Standalone health insurers reported a robust 16 per cent growth in combined gross premiums, which increased to ₹38,414 crore (₹33,119 crore).
A recent report by CARE Ratings noted that the sector’s performance was impacted by the transition to the 1/n accounting rule, muted growth in the passenger vehicle (PV) segment and broad-based weakness in commercial insurance lines.
Among public sector insurers, New India Assurance Co, which remains the leading general insurer in the country, posted a 4 per cent increase in premium income at ₹38,629 crore. United India Insurance Co saw a marginal rise of 1 per cent to ₹20,074 crore. The Oriental Insurance Company reported an 8 per cent increase, while National Insurance recorded a higher growth rate of 10 per cent.
In the private sector, ICICI Lombard General Insurance, the second-largest player in the non-life segment, recorded an 8 per cent growth in premium income at ₹26,833 crore. HDFC Ergo, on the other hand, experienced a 15 per cent decline with premium income falling to ₹15,817 crore.
Health insurance
The standalone health insurance segment showed stronger momentum.
Star Health registered a 10 per cent rise in gross premium income to ₹16,716 crore. Despite this, its market share in the standalone health category dropped to 43.5 per cent (46 per cent). However, its overall share in the non-life insurance sector rose slightly to 5.43 per cent (5.27 per cent).\
Care Health emerged as the second-largest standalone health insurer, reporting a 21 per cent growth in premium income to ₹8,297 crore. Niva Bupa Health also saw a 21 per cent increase in premium income.
Published on April 9, 2025
