In July 2024, the non-life insurance sector reported a premium total of ₹29,032.29 crore, marking a 9.3 percent increase compared to the 13.6 percent growth recorded in July 2023. The slower growth trajectory was primarily driven by performance in the retail health, motor OD, and crop insurance sectors, while areas such as fire and aviation insurance experienced relatively weak year-on-year growth, according to CareEdge Ratings.
Public sector general insurers saw their premiums rise by 11.2 percent in July 2024, outperforming their private sector counterparts, who posted a growth of 3.7 percent for the same period. This trend reverses the previous period when private insurers had consistently outpaced their public sector peers. For four consecutive months this fiscal year, private insurers had been gaining ground. The primary contributors to this growth were crop, health, and motor insurance segments.
Specialized insurers experienced a notable increase of 48.3 percent in July 2024, a significant recovery from the 53.6 percent drop seen in July 2023. For the year-to-date FY25, specialized insurers reported a growth of 13.5 percent compared to a decrease of 28.7 percent in YTD FY24.
Standalone Private Health Insurers (SAHIs) maintained a robust year-on-year growth rate of 23.2 percent in July 2024, slightly down from 24 percent the previous year. SAHIs continue to capture a larger share of the retail health market from public general insurers. With new SAHIs expected to enter the market, competition in the health insurance sector is anticipated to intensify in FY25.
The market share of private non-life insurance companies has risen to 66 percent for YTD FY25, up from 63 percent in FY24 and 61 percent in FY23, indicating a sustained growth differential between private and public insurers.
“The initial four months of FY25 have shown a moderate growth rate of 12.1 percent. This tempered growth is attributed to weak performance in commercial segments such as fire and a decrease in government health business, although this has been offset by growth in retail health and crop insurance. SAHIs have gained market share in July 2024. The industry’s growth will continue to be driven by health and motor insurance segments, with increasing competition, particularly in health insurance due to new market entrants,” stated Saurabh Bhalerao, Associate Director at CareEdge Ratings.
CareEdge Ratings projects the Indian non-life insurance market will grow at a rate of approximately 13 to 15 percent in the medium term.
“The overall business growth will be bolstered by macroeconomic factors, a favorable regulatory environment, and the Bima Trinity. Potential developments such as composite licenses and mergers and acquisitions could influence sector dynamics. The sector’s outlook remains stable in the medium term, though heightened competition and uncertain international geopolitical conditions may impact it,” added Gaurav Dixit, Director at CareEdge Ratings.
