Non-Life Insurers Close FY25 With 5% Growth

Mumbai: Weak infrastructure investments, 1/n regulation implementation for long-term products and a slowdown in motor sales impacted the growth of the non-life insurance sector, with Gross Direct Premium (GDP) underwritten increased by 5.10 per cent at Rs 2.57 lakh crore during 2024-2025 compared to Rs 2.45 lakh crore in the previous fiscal. The gross premium of the entire industry, including specialised PSU
insurers, namely Export Credit Guarantee Corporation and Agriculture Insurance Company, rose by 6 per cent in the financial year ended March 31, 2025, at Rs 3 lakh crore as against Rs 2.89 lakh crore in the previous fiscal year.

Effective October 1, the revised IRDAI 1/n rule mandate insurers spread long-term policy premiums over the entire policy duration instead of booking the full amount upfront. This change impacted the Gross Written Premium (GWP) calculations of non-life insurers.

Pure health insurance companies collected Rs 38,414 crore in FY25, up 16 per cent from the previous year, compared to Rs 33118 crore in the previous year. The segment now accounts for over 12.5 percent of the total non-life insurance market.

The largest non-life insurer, New India Assurance, wrote Rs 38629 crore of business, a growth of 4.41 per cent in FY25, followed by ICICI Lombard General Insurance, that took the second spot with a gross direct premium underwritten at Rs 26833 crore, a growth of 8.3 per cent.

The third spot went to Bajaj Allianz (Rs 21416 crore). Chennai headquartered United India Insurance underwrote a gross direct premium of Rs 20073 crore, a growth of one percent.