India's non-life insurance premiums dip slightly in December 2024

Because of revised reporting requirements that defer long-term policy recognition.

The non-life insurance industry premiums in India marginally fell by 0.3% year-on-year (YoY) to ₹25,018.7 crore in December 2024.

This was significantly smaller than the robust growth of 14.8% seen in the previous year.

This flat performance is largely attributed to revised reporting requirements that defer the recognition of premiums from long-term policies. 

As a result, year-on-year growth rates are not directly comparable. Retail health and motor third-party (TP) segments provided some support, partially offsetting weaker performance in the commercial lines.  

Saurabh Bhalerao, associate director at CareEdge Ratings, noted that this reporting adjustment will continue to affect growth comparisons until the base effect stabilises. 

Despite the temporary slowdown, he highlighted positive factors such as a supportive regulatory environment and the "Bima Trinity" initiative as key drivers of future growth.  

The health insurance sector is expected to maintain its upward trajectory, with standalone health insurers (SAHIs) maintaining a stronghold in the retail space. 

Growth in the motor insurance segment remains tied to vehicle sales and adjustments in TP tariffs.  

CareEdge Ratings projects medium-term growth for the non-life insurance market at approximately 13% to 15%. 

However, challenges such as intensified competition and geopolitical uncertainties could pose risks to the sector's performance.