India`s non-life insurance premium grows 5.2% in June 2025: CareEdge Ratings
CareEdge Ratings in its latest report has stated that India’s non-life insurance industry exhibited a 5.2% year-on-year increase in premiums to Rs 23,422.5 crore in June 2025. Meanwhile, the reported growth was lower than the 8.4% growth recorded in June 2024. CareEdge noted that the transition to the 1/n rule has impacted the industry's performance, resulting in a slowdown in health insurance growth to single digits and muted growth in the passenger vehicle (PV) segment, which was partially offset by renewals in the commercial lines.
It highlighted that despite the moderation in premium growth, non-life insurance premiums crossed the Rs 3 lakh crore mark in FY25, driven by supportive regulations, rising insurtech adoption, accelerating digitalisation, and an expanding middle class. Further, the government's Bima Trinity push is poised to accelerate growth in the non-life insurance sector. Besides, standalone health insurers are expected to maintain their dominance in the retail health space.
It expects motor insurance to closely follow trajectory of vehicle sales and the upcoming revisions to third-party tariffs. Further, proposed roll out of composite licences could reshape the competitive landscape in the medium term. Meanwhile, it noted that the rising competition and global geopolitical uncertainties will remain crucial watchpoints for the sector.
