Mumbai – India’s non-life insurance industry surpassed the ₹3 lakh crore premium mark in the fiscal year ending March 2025, but recorded only marginal growth, reflecting mounting structural and market pressures.
According to industry analysts, the sector posted a year-on-year growth of just 0.2% in March 2025—sharply down from 9.9% growth reported in March 2024. The stagnation is attributed to low passenger vehicle (PV) sales, a weakened commercial insurance segment, and the industry-wide transition to the 1/n accounting rule, which spreads premium income recognition over the policy term.
Despite the subdued overall performance, Standalone Private Health Insurers (SAHIs) provided a partial buffer, continuing their strong run in the retail health insurance space.
“This flat performance underscores the pressure the industry is under due to structural changes and subdued market demand,” said Saurabh Bhalerao, Associate Director at CareEdge Ratings.
While the achievement of crossing ₹3 lakh crore in premiums marks a milestone, Priyesh Ruparelia, Director at CareEdge Ratings, noted that the slowdown should be a wake-up call for the industry. “It’s a signal that fresh strategies and stronger regulatory support are essential for future growth,” he said.
He added that the recently introduced Bima Trinity framework is expected to support sector expansion, with health insurers—especially SAHIs—poised to remain key growth drivers.
Looking ahead, growth in the motor insurance segment will hinge on improvements in vehicle sales and adjustments to third-party insurance tariffs. Analysts also flagged intensifying competition and global geopolitical uncertainties as critical factors influencing the sector’s trajectory in the coming fiscal year.
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