Kathmandu. India’s non-life insurance industry is facing the slowest growth rate in the last 25 years. According to data released by the Insurance Regulator of India, at the end of FY25, Indian non-life insurers achieved an average growth rate of only 6.20 percent. This is the worst growth rate since 2001.
In the fiscal year 2020, fiscal year 2021 and fiscal year 2022, the average growth rate was 9.5 percent.
The non-life insurance industry, comprising 34 insurers, including seven health insurance companies, has increased its total insurance premium income by 6.2 per cent year-on-year to nearly Rs 308 billion (about Rs 481 billion) in FY25. Multiline non-life insurance companies have barely been able to increase their top insurance coverage by 5.20 per cent to Rs 258 billion in FY25.
The sudden slowdown in the pace of the industry’s progress is due to a sharp decline in the insurance income of major insurers in the line of business including the health portfolio. It was growing at a rapid pace, especially after Covid.
As of February, the health portfolio, which had been growing more than 25 percent monthly in recent years. It has increased by just 9.31 per cent to Rs 107 billion.
Top 5 players – Naya Bharat Assurance (with a market share of 12.56 per cent), ICICI Lombard General Insurance (8.72 per cent), Bajaj Allianz General Insurance (6.96 per cent), United India Insurance (6.53 per cent), Oriental Insurance Company (6.45 per cent) have expanded their top line in single digits during the reporting year.
