India’s non-life insurance sector posted slower premium growth in July 2025, with total collections reaching ₹29,729.8 crore, reflecting a 2.4% increase year-on-year, according to CareEdge Ratings.
This is considerably lower than the 9.3% rise reported in July 2024.
CareEdge Ratings attributed the slowdown to the adoption of the 1/n rule, single-digit growth in health insurance, and tepid performance in the passenger vehicle segment.
Commercial line renewals, particularly in fire and engineering, partially offset the decline.
Saurabh Bhalerao, associate director at CareEdge Ratings, explained that the 1/n rule, slower health growth, and muted PV segment performance influenced overall numbers.
“However, renewals in the fire and engineering segments provided some support,” he said.
Public sector general insurers sustained higher growth for the 10th consecutive month, driven by renewals in fire, engineering, health, and motor third-party segments.
Private non-life insurers continue to hold roughly half of the market share. Specialised insurers reported a 49.2% year-on-year increase in July premiums, slightly above July 2024’s 48.3% growth. Their year-to-date growth rose to 27.5%, compared with 13.5% in the previous period.
Standalone health insurers (SAHIs) experienced slower growth, with premiums rising 10.4% year-on-year in July 2025, down from 23.1% the prior year.
Factors included higher premiums, a shift towards group health policies, and the impact of IRDAI’s Bima Trinity program.
Despite this, SAHIs continued to capture market share from private general insurers.
Excluding health insurance, non-life premiums grew 2.5% year-on-year in July.
Motor own-damage premiums increased 4.9% YTD, while motor third-party rose 10.1%.
Fire and engineering premiums expanded by 19.1% and 16.8%, respectively, reflecting policy renewals and infrastructure-related risk coverage.
In contrast, crop insurance premiums declined 29.0% due to variations in government scheme bookings.
Health insurance remained the largest segment within non-life insurance.
Group health premiums grew 11.4% YTD, while retail health rose 9.1%.
SAHIs continued to focus on retail business, whereas public and private insurers dominated group coverage.
Other categories, including government schemes and overseas medical, dropped 42.5% in July 2025.
Priyesh Ruparelia, director at CareEdge Ratings, said that the Bima Trinity initiative could drive future sector growth.
“Standalone health insurers are expected to retain their leadership in the retail health space, underpinned by consumer demand and deep distribution reach. In contrast, the trajectory of motor insurance will remain intrinsically linked to trends in vehicle sales and the anticipated revisions in third-party tariffs. Meanwhile, the proposed rollout of composite licences carries the potential to significantly reshape the competitive dynamics of the industry over the medium term. Nonetheless, intensifying competition and evolving global geopolitical risks will be key factors to monitor,” he said.
Meanwhile, India’s life insurance market is projected to reach ₹14.6 trillion (US$170 billion) in gross written premiums by 2029, growing at a 9.6% compound annual rate from ₹9.2 trillion in 2024.
For 2025, GWP is estimated at ₹10.1 trillion (US$120.5 billion), a 9.9% increase.
Growth is driven by digital adoption, rising financial awareness, and demand for whole life and term insurance, particularly among younger policyholders.
Regulatory initiatives such as the Bima Sugam portal, AI-driven solutions, and the increased FDI cap are expected to support expansion.
Rural markets remain a key focus, with products like Bima Vistaar aimed at improving coverage.
In June 2025, life insurers reported new business premiums of ₹93,544.54 crore, up 4.25% year-on-year. Individual single premiums increased 21.91%, and individual non-single premiums rose 9%.
