India's non-life insurance climbs 4.4% in November

The modest growth was driven by retail health and motor third-party.

India’s non-life insurance industry reported a premium of Rs21,671.4 crore, reflecting a modest 4.4% year-on-year (YoY) growth in November 2024. The previous year's November recorded an 8.1% YoY increase.

This comes after the industry surpassed the Rs30,000-crore mark in October 2024. 

However, growth figures for the current year are not directly comparable to previous years due to a revised reporting format that excludes premiums from long-term policies.  

The modest growth in November was driven by retail health and motor third-party (TP) segments, which offset declines in fire insurance and near-flat performance in the Motor Own Damage (OD) category. 

Saurabh Bhalerao, associate director at CareEdge Ratings, explained that the differential in growth rates is likely to persist until the base effect stabilises.

According to Sanjay Agarwal, senior director at CareEdge Ratings, the health insurance sector’s growth is expected to continue, with standalone health insurers dominating the retail space. 

Meanwhile, growth in the motor insurance segment remains closely linked to vehicle sales and revisions in TP tariffs. 

Overall, the non-life insurance market is anticipated to grow at 13% to 15% in the medium term, supported by regulatory reforms such as the proposed Insurance Amendment Act, 2024. 

Key provisions in the act include a composite license, 100% FDI in insurance companies, and revised capital requirements aimed at boosting market penetration.

However, Agarwal cautioned that increasing competition and geopolitical uncertainties could pose challenges to the sector’s growth trajectory.