India’s non-life insurance sees flat growth in FY 2025

It was dragged by the low passenger vehicle sales growth during the period.

The non-life insurance industry in India crossed the Rs3 lakh crore premium mark in the fiscal year ending March (FY 2025) but recorded minimal growth compared to previous years.

Industry performance was impacted by the shift to the 1/n rule, low growth in passenger vehicle (PV) sales, and continued weakness in commercial insurance lines.

In March 2025, the industry posted a marginal year-on-year growth of 0.2%, significantly lower than the 9.9% increase recorded in March 2024. 

The transition to the new accounting rule and subdued PV growth were key contributing factors. 

Performance in general insurance declined but was partially offset by gains from Standalone Private Health Insurers (SAHIs).

According to Saurabh Bhalerao, associate director at CareEdge Ratings, the flat performance reflects the pressure from structural and market factors. 

CareEdge Ratings director Priyesh Ruparelia noted that whilst crossing the Rs 3 lakh crore threshold is notable, the slowdown highlights the need for renewed efforts to drive growth.

He added that regulatory support and the Bima Trinity framework are expected to aid expansion, with SAHIs continuing to lead the retail health segment. 

Growth in the motor segment will depend on vehicle sales and third-party tariff revisions. Competition and global geopolitical uncertainties remain key factors to watch.