India’s non-life premiums see double-digit growth in FY’24

The industry is projected to grow 13% to 15% in the medium term.

In fiscal year 2024 (FY’24), the non-life insurance industry in India saw a premium of Rs2.9 lakh crore, growing at 12.8%. This growth, however, was narrower than the 16.3% seen in 2023.

It was primarily driven by health and motor insurance, though there was a decline in liability, crop insurance, and credit guarantee.

Public sector general insurers saw a March 2024 rise of 9.9%, while private sector insurers reported a growth of 9.5%. 

Specialised insurers experienced a drop, largely due to reduced crop insurance premiums. Standalone Private Health Insurers (SAHI) continued their growth momentum.

Private non-life insurance companies increased their market share to 65% in FY'24. 

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Health insurance premiums remained the primary growth driver, increasing the segment’s market share to 37.6% for FY'24.

Excluding health, non-life insurance industry growth reduced to 8.7% in FY'24. 

Motor insurance accounted for approximately 50% of this growth, with Motor OD growing faster than Motor TP. 

The automotive industry's robust growth and rising premiumisation contributed to this growth.

Looking ahead, the Indian non-life insurance market is estimated to grow at a rate of approximately 13% to 15% in the medium term, driven by health and motor insurance segments. 

Macroeconomic factors and regulatory changes will also influence growth. However, intensified competition and geopolitical uncertainties could pose challenges.