India’s non-life insurance industry registered a year-on-year growth of 6.5% in May 2025, with gross direct premiums touching ₹22,257.4 crore, according to data released by CareEdge Ratings. The sector’s performance marked a significant slowdown from the 14.9% growth recorded in May 2024.
The moderation is attributed largely to the introduction of the 1/n rule and slower expansion in health and passenger vehicle (PV) insurance. However, this softening was somewhat balanced by sustained renewal activity in commercial insurance lines—particularly in the fire and engineering sectors—reflecting ongoing demand for business insurance coverage across infrastructure and industrial segments.
Despite the monthly deceleration, the financial year 2025 marked a significant milestone for India’s non-life insurance sector, with annual premiums surpassing ₹3 lakh crore. Industry analysts cite a combination of regulatory support, accelerated digital adoption, Insurtech innovation, and rising income among India’s growing middle class as key growth drivers.
CareEdge anticipates that standalone health insurers (SAHIs) will continue to dominate the retail health insurance segment in the near term. This trend underlines the increasing demand for trustworthy insurance options amid heightened health awareness post-pandemic.
In contrast, the motor insurance segment’s performance will hinge on automobile sales and potential adjustments in third-party premium tariffs. The industry is also closely watching the proposed rollout of composite licences, which could reshape the competitive landscape by enabling entities to offer both life and non-life insurance products under a single licence.
For policyholders and businesses seeking to navigate this evolving market, a comprehensive insurance guide can offer clarity on product selection, pricing trends, and coverage gaps across different policy types.
As regulatory changes and market forces reshape the non-life landscape, stakeholders—from insurers to policyholders—will need to adapt to a dynamic environment defined by technology, competition, and shifting consumer needs.
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