Kathmandu. India Ratings and Research has forecast that the Indian non-life insurance sector will grow at a compound annual growth rate of 13 percent in gross written premiums in FY2025, despite a moderate growth in the previous fiscal year.
India Ratings, in a statement issued on Monday, said that the health and crop insurance sectors will drive significant growth in FY2026. It also pointed out that non-life insurers’ profitability is likely to improve in the current fiscal year as reinsurance rates are low and many insurers have increased premiums for health insurance.
In the previous fiscal year, gross written premium growth for the non-life insurance industry was around 8 percent per annum for the nine months. It had expected growth of around 8.5 percent for FY25. In the last fiscal year, gross written premium growth was lower due to lower vehicle sales. Crop insurance was also lower. Business lines were also not doing well due to sluggish capital expenditure.
This year’s growth in non-life insurance will come from health insurance and to some extent crop insurance. Vehicle sales will also see some growth. And, with capital expenditure coming back, there may be an increase in business lines. Based on that, we expect the overall growth in gross written premium in FY26 to be around 13 percent.
Price pressures remain for general insurers due to increasing competition and declining consumer affordability, which will impact insurers’ underwriting profits.
