Why in the news
Non-life insurers collected ₹3.08 trillion in FY25, but growth slowed to 6.2%, the weakest in three years.
Key facts
- FY24 premium: ₹2.89 trillion, up 13%; FY23 growth was 16.3%.
- Slowdown causes: economic softness and weak vehicle sales hurting motor cover; aggressive pricing in fire insurance.
- IRDAI changed accounting for long-term premiums to the 1/N method (based on policy duration), hitting health and fire.
| Growth by year | FY25 | FY24 | FY23 |
|---|
| Total industry | 6.2% | 12.78% | 16.36% |
| Standalone health | 15.99% | 26.19% | 25.76% |
| General insurance | 5.2% | 14.24% | 16.2% |
| Specialised insurers | -29.25% | -0.75% | 5.3% |
Multiline insurers, FY25
| Insurer | Premium | Growth |
|---|
| New India Assurance | ₹38,629.21 crore | 4.41% |
| Oriental Insurance | ₹19,826.27 crore | 8.41% |
| National Insurance | ₹16,666.91 crore | 10.28% |
Outlook for FY26
- Premium growth seen at 9-13%.
- Drivers: better macro conditions, growth in health and commercial lines, a possible motor third-party premium revision, and private insurers gaining share.
Also noted: Specialised Investment Funds (SIFs)
- Mutual funds are preparing SIFs, a high-risk category for sophisticated investors with a ₹10 lakh minimum.
- Strategies: long-short equity, hybrid allocation, debt and sectoral long-short.
- SEBI clarified SIFs are exempt from interval scheme rules; the April 1, 2025 start looked likely to slip.
Exam angle
- Regulator: IRDAI.
- Accounting method: 1/N for long-term premiums.
- SIF minimum ticket: ₹10 lakh.