India non-life premiums leap 28% in October

YTD growth in FY 2025 was subdued compared to FY 2024.

In October 2024, India’s non-life insurance industry reported premiums of ₹30,378 crore, marking a 27.5% increase from the previous year and surpassing the ₹30,000-crore level for the first time in 79 months.

This growth followed a decline in September 2024 and compared to a 13.7% rise in October 2023.

The growth was driven by strong performance in the health (particularly retail) and motor own-damage (OD) segments, which offset declines in the fire and aviation segments. 

However, year-to-date growth in FY 2025 was subdued compared to FY 2024 due to weak performance in commercial segments such as fire and crop insurance. 

Standalone health insurers (SAHIs) continued to outperform in the health segment, whilst flat third-party (TP) motor insurance tariffs limited growth in motor TP.

Saurabh Bhalerao, associate director at CareEdge Ratings, attributed October's performance to increased passenger vehicle sales and projected the non-life insurance market to grow at 13% to 15% in the medium term. 

The sector’s expansion will be supported by demand in retail health and motor insurance, macroeconomic factors, favourable regulations, and initiatives such as the Bima Trinity. 

Sanjay Agarwal, Senior Director at CareEdge Ratings, highlighted the potential impact of composite licenses and mergers and acquisitions on sector dynamics. 

Whilst the outlook for the industry remains stable, Agarwal noted that intensified competition and geopolitical uncertainties could pose challenges.