Non Life Insurance
Non-life insurance industry sees 6.5% growth in May 2025, demonstrates mixed signals across insurers
India’s non-life insurance sector reported a modest-yet-steady growth in May 2025, with total gross direct premium underwritten increasing by 6.46 percent year-on-year to Rs 22,257 crore, up from Rs 20,907 crore in May 2024.
The data, released in the industry’s Flash Report on June 9, shows that cumulative premiums for April–May (first two months of FY26) reached Rs 55,854 crore, reflecting a stronger 10.4 percent growth compared to the same period last year.
This growth comes amid a regulatory shift in premium reporting.
Following new IRDAI guidelines, effective from October 2024, premiums from long-term policies are now excluded from monthly reporting. As a result, growth figures for FY26 may not be strictly comparable with previous year data, potentially understating performance for some insurers.Among general insurers, state-run players posted mixed performances.
The New India Assurance Company, the country’s largest non-life insurer, posted a robust 22.5 percent growth in May, underwriting Rs 2,945 crore in premiums. Similarly, United India Insurance grew by 7.7 percent, while National Insurance saw a 5.8 percent increase. In contrast, Oriental Insurance contracted by 8 percent, reflecting the varying impact of regulatory changes and portfolio strategies among PSU insurers.
On the private side, Bajaj Allianz General Insurance posted a strong 21 percent growth, collecting Rs 1,322 crore in May. Tata AIG grew by 13 percent, while ICICI Lombard, the largest private general insurer, showed moderate growth of 2.4 percent, with premiums totalling Rs 2,155 crore. Zurich Kotak Mahindra General saw a 33.5 percent surge, while Navi General Insurance registered a remarkable 27.4 percent jump, albeit from a small base.
Several players, however, experienced contractions.
Future Generali saw a steep decline of 26 percent, while Cholamandalam MS and Go Digit shrank by around 7.5 percent and 2.2 percent respectively.
Standalone health insurers posted an overall growth of 9.98 percent in May, reaching Rs 2,917 crore. Aditya Birla Health led the pack with a substantial 36 percent increase, followed by ManipalCigna, which posted a robust 43 percent rise. Market leader Star Health grew more modestly at 3.3 percent, while Care Health Insurance and Niva Bupa posted moderate gains of around 5 percent and 10 percent respectively.
These figures indicate a steady demand for health products, even as insurers continue to adjust pricing and underwriting strategies in a post-pandemic environment.
Among specialised insurers, Agriculture Insurance Company showed a rebound with a dramatic turnaround in premium collections, while ECGC reported stable 3.8 percent growth. Their contribution to the overall non-life premium pool remains marginal at under 1 percent.
Overall, general insurers retained a dominant 89.2 percent share of the non-life premium market, followed by standalone health insurers at 10.4 percent. Market shares across segments remained largely stable year-over-year.
Source : Money Control
