Health insurance drives non-life premium growth, contributes 41.4% of total premium in FY25

Health insurance drives non-life premium growth, contributes 41.4% of total premium in FY25

• Health insurance led non-life premiums in 2024-25, with a 41.42 percent share.
• Health insurance growth slowed to 9.19%, down from 19.50% last year.
• Motor insurance was second largest, growing 7.97 percent to Rs 99,093 crore.

Did our AI summary help?

Health insurance continued to dominate India’s non-life insurance business in 2024-25, accounting for over 41 percent of the total premium collected during the year, even as overall growth moderated across segments, the recent annual report by Insurance Regulatory and Development Authority of India showed.

Among various segments under the non-life insurance business, health insurance remained the largest contributor with a share of 41.42 percent of the total premium in 2024-25, up from 40.29 percent in the previous financial year. However, the growth rate of the segment slowed sharply. The health insurance segment reported a year-on-year growth of 9.19 per cent in 2024-25, significantly lower than the 19.50 per cent growth recorded in 2023-24, reflecting a base effect as well as some moderation in demand and pricing.

Despite the slowdown, health insurance continued to anchor the non-life insurance industry, supported by rising medical costs, increased insurance awareness post-pandemic, and steady demand from retail and group policies, the report said.

Standalone health insurers, in particular, continued to expand their presence, even as competition intensified among general insurers offering health covers.

The motor insurance segment remained the second-largest contributor to non-life premiums, posting steady growth during the year. Motor insurance premiums grew 7.97 percent year-on-year to Rs 99,093 crore in 2024-25, compared with Rs 91,781 crore in 2023-24. The segment’s share in the total non-life premium marginally increased to 32.21 percent from 31.68 percent a year earlier.

Industry participants attributed the growth in motor premiums to higher vehicle sales, especially in the passenger vehicle and two-wheeler segments, as well as an increase in average ticket sizes driven by rising vehicle prices and higher third-party insurance rates.

However, competitive pricing and pressure on margins continued to remain a concern for insurers in the motor segment.

In contrast, performance across other segments was mixed.

Premium collection in the fire insurance segment declined by 5.58 percent in 2024-25, reflecting muted activity in large industrial and commercial risks as well as pricing pressures. The marine insurance segment, however, reported an increase of 8.10 percent during the year, supported by growth in trade volumes and logistics activity.

Alongside premium growth, insurers also continued to strengthen their capital base during the year.

As of March 31, 2025, the combined paid-up capital of all non-life insurers stood at Rs 43,390 crore, up from Rs 42,245 crore in the previous year. During 2024-25, general and health insurers together added Rs 1,144 crore to their equity capital base.

Private sector general insurers accounted for the bulk of the capital infusion, injecting Rs 863 crore during the financial year. Standalone health insurers infused Rs 281 crore.