India’s non-life premiums rise 6.5% YoY in May

CareEdge expects standalone health insurers (SAHIs) to continue leading in the retail.

India’s non-life insurance industry recorded a 6.5% year-on-year premium growth in May 2025, with total premiums reaching Rs 22,257.4 crore. 

This marks a sharp slowdown from the 14.9% growth seen in May 2024, largely due to the implementation of the 1/n rule and a deceleration in health and passenger vehicle (PV) insurance growth.

According to CareEdge Ratings, the subdued performance was partially offset by renewals in commercial lines, particularly in the fire and engineering segments.

Despite the monthly slowdown, FY 2025 marked a milestone for the non-life insurance sector as annual premiums crossed Rs 3 lakh crore. 

Growth was supported by favourable regulations, increased Insurtech adoption, digitalisation, and a growing middle class.

CareEdge expects standalone health insurers (SAHIs) to continue leading in the retail health segment, whilst motor insurance performance will depend on vehicle sales and the upcoming revision of third-party tariffs. 

The expected rollout of composite licences may further reshape market dynamics by increasing competition.