India’s non-life insurance premiums rise 2.4% in July 2024

The Bima Trinity initiative is expected to drive further sector growth.

India’s non-life insurance sector posted premiums of ~$3.4b (Rs29,729.8 crore) in July, up just 2.4% year-on-year, a sharp slowdown from the 9.3% growth recorded in July 2024.

According to CareEdge Ratings, the shift to the 1/n rule weighed on performance, alongside single-digit growth in health insurance and weaker momentum in the passenger vehicle segment.
Renewals in commercial lines, particularly in fire and engineering, provided some support.

“Non-life insurance premiums surpassed the $34.4b (Rs 3 lakh crore) milestone in FY25, supported by enabling regulations, rapid Insurtech adoption, accelerating digitalisation, and a growing middle class,” said Priyesh Ruparelia, director, CareEdge Ratings.

Ruparelia added that the government’s Bima Trinity initiative is expected to drive further sector growth. 

Ruparelia noted that standalone health insurers are likely to retain leadership in retail health due to strong consumer demand and wide distribution, whilst motor insurance will remain tied to vehicle sales and revisions in third-party tariffs. 

Ruparelia also said that the proposed rollout of composite licences could alter industry competition over the medium term, although rising competition and global geopolitical risks remain key factors to watch.