India’s non-life insurance premiums rise 5.2% in June 2025

The government’s Bima Trinity initiative is expected to support future growth.

Premium growth in India’s non-life insurance industry slowed to 5.2% year-on-year in June 2025, with total premiums reaching Rs 23,422.5 crore. 

This was lower than the 8.4% growth reported in June 2024.

According to CareEdge Ratings, the industry’s performance was affected by the shift to the 1/n rule, a deceleration in health insurance to single-digit growth, and subdued demand in the passenger vehicle segment. 

These were partially offset by renewals in the commercial lines, particularly in the fire and engineering categories.

Despite the monthly slowdown, non-life insurance premiums crossed Rs 3 lakh crore in fiscal year 2025. 

CareEdge said this was supported by regulatory initiatives, increased adoption of Insurtech, growing digitalisation, and a larger middle-class base.

The government’s Bima Trinity initiative is expected to support future growth.

Standalone health insurers are likely to continue leading the retail health segment, whilst motor insurance trends will depend on vehicle sales and upcoming changes to third-party tariffs. 

The proposed introduction of composite licences may reshape the market over the medium term, though rising competition and geopolitical risks remain key concerns.