India’s non-life insurance industry recorded a premium of Rs 21,747.6 crore in February 2025, reflecting a 2.8% decline compared to the 12.6% growth seen in February 2024.
According to a research note from CareEdge Ratings, the industry’s performance has been impacted by the transition to the 1/n rule, slow growth in the personal vehicle (PV) sector, and weaknesses in commercial lines. Saurabh Bhalerao, Associate Director at CareEdge Ratings, noted that while the decline in general insurance was partially offset by the Special Agricultural Health Insurance (SAHI) schemes, the overall market faced considerable pressure.
Despite the drop in February premiums, experts remain optimistic, forecasting that the industry’s premiums for fiscal year 2025 are likely to surpass Rs 3 lakh crore. This growth is expected to be driven by a favorable regulatory environment and initiatives like the Bima Trinity.
The health insurance sector is expected to continue its strong growth trajectory, with SAHIs maintaining a dominant presence in the retail insurance market. Meanwhile, the motor insurance segment’s growth will be closely linked to vehicle sales trends and adjustments to third-party tariff rates.
Looking ahead, CareEdge Ratings anticipates that the Indian non-life insurance market will expand at a rate of approximately 13-15% in the medium term. However, Priyesh Ruparelia, Director at CareEdge Ratings, warned that heightened competition and geopolitical uncertainties could present challenges to the sector’s performance.
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