In a significant development, India’s non-life insurance industry achieved a remarkable milestone in October 2024. The premiums reported reached ₹30,378 crore, which represents a substantial 27.5% increase compared to the previous year. This achievement is all the more notable as it breached the ₹30,000-crore mark for the first time in 79 months. However, this growth comes after a decline in September 2024 and contrasts with a relatively more modest 13.7% rise in October 2023. The driving forces behind this recent growth spurt have been the robust performance in the health (especially the retail aspect) and motor own-damage (OD) segments. These segments have effectively counterbalanced the declines witnessed in the fire and aviation segments.
Nevertheless, the year-to-date growth in FY 2025 has been lackluster when compared to FY 2024. The culprit behind this subdued growth is the weak performance in commercial segments such as fire and crop insurance. Standalone health insurers (SAHIs) have been shining in the health segment, maintaining their outperformance. In contrast, the flat third-party (TP) motor insurance tariffs have put a brake on the growth of motor TP. Saurabh Bhalerao, an associate director at CareEdge Ratings, ascribed October’s performance to the increased sales of passenger vehicles and predicted a medium-term growth rate of 13% to 15% for the non-life insurance market. He believes that the sector’s expansion will be bolstered by the demand in retail health and motor insurance, along with macroeconomic factors, favorable regulations, and initiatives like the Bima Trinity.
Sanjay Agarwal, a Senior Director at CareEdge Ratings, has drawn attention to the potential implications of composite licenses and mergers and acquisitions on the sector’s dynamics. While the overall outlook for the industry remains stable, Agarwal has cautioned that intensified competition and geopolitical uncertainties could emerge as significant challenges. These factors will need to be carefully navigated by the industry players to ensure continued growth and success in the ever-evolving non-life insurance landscape.
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