India non-life insurance premiums growth eases to 1.6% in August 2025

Growth in health, fire, and engineering insurance partly offset the decline.

India’s non-life insurance sector reported slower premium growth in August 2025, with collections at $2.83b (Rs24,953 crore), up just 1.6% from a year earlier. 

This compared with a 4.2% rise in August 2024, according to CareEdge Ratings.

The slowdown was driven by the shift to the 1/n rule, delays in policy purchases amidst expectations of a cut in Goods and Services Tax (GST), weaker demand for crop insurance, and softer passenger vehicle sales. 

Growth in health, fire, and engineering insurance partly offset the decline.

Despite the monthly slowdown, non-life premiums crossed $34.0b (Rs3 lakh crore) in fiscal year 2025, supported by regulatory changes, digitalisation, and rising demand from the middle class, CareEdge noted. The Bima Trinity programme and wider use of Insurtech are also expected to boost future growth.

Standalone health insurers remain strong in the retail segment, whilst motor insurance performance is expected to depend on vehicle sales and revisions to third-party tariffs. 

CareEdge added that upcoming composite licences could reshape competition, whilst GST cuts would likely improve affordability, compliance, and penetration.

($1.00 = Rs88.33)