Kathmandu. Insurance costs are increasing rapidly in neighbouring India. It has also been revealed that the premium of non-life insurance in India is twice as expensive as compared to the world.
According to a report by Switzerland’s ‘Swire Institute’, premiums for non-life insurance such as health, cars and homes in India have doubled compared to the world. The Government of India has expressed concern over non-life insurance companies arbitrarily increasing insurance premiums.
The Government of India has directed insurance regulator IRDAI to investigate the issue of non-cause increase in health insurance premium. The insurance regulator has been directed to investigate the complaints regarding the increase in premium of customers who do not claim insurance by 20-30 percent.
Irdai, on the other hand, has suggested the government to increase the third-party insurance premium of the car from 18 percent to 25 percent. Insurance companies have also been complaining of losses due to increased claims in recent years.
On the other hand, customers complain that although treatment is cheaper in small cities of India, the premium of health insurance has been increased as much as the metropolis. They said that the premium has been increased by 20-30 percent. Some companies have set limits on treatment when customers fall ill after taking insurance. While government companies have paid 100 per cent claims, private companies are cancelling 20-30 per cent claims.
Swiss Relay studied premiums in non-life insurance in 10 countries, including India, in three parts. During the study, the increase in insurance premium between the first year 2019-2023, the second estimate of insurance premium in the year 2024 and the third year of the insurance premium in the year 2025 and 2026 were estimated.
According to the study report, between 2019-23, the global premium increased by a compound annual growth rate of 3.7 percent. In India, the rate was 4 per cent. In 2024, global premium surged by 4.3 per cent, while India grew by 6.8 per cent.
Insurance premiums in India are projected to grow by 8 per cent in 2025 and 9.3 per cent in 2026. Insurance premiums are estimated to rise by an average of 4.1 per cent globally. In this way, insurance premiums in India are likely to be twice as expensive as in the world.
Estimates of non-life insurance premium growth in major countries of the world (2025–26)
- U.S.: 1.8 percent
- Canada: 2.1 percent
- France: 2.3 percent
- Germany: 1.1 percent
- Italy: 1.7 percent
- UK: 0.7 percent
- Australia: 4.2 percent
- Japan: 0.5 percent
- India: 8.8%
- China: 4.1 percent
Why is insurance premium rising?
According to the Swiss Rico report, the Asian insurance market is growing rapidly. India has played a major role in this growth. However, premiums are booming as insurance claims and company spending increase. As a result, the common man has to spend a lot of money on insurance for security.
