Indian Economy News

Non-life insurers expecting to register double-digit growth in 2025

  • IBEF
  • January 3, 2025

Despite stagnant general insurance penetration in India, non-life insurers anticipate double-digit growth in 2025, driven by a supportive regulatory framework and innovative product offerings tailored to customer needs. To achieve this growth, industry stakeholders have highlighted key factors, including a favourable Goods and Services Tax (GST) outcome and a review of motor third-party insurance rates. According to Future Generali India Insurance MD & CEO Mr. Anup Rau, health insurance will remain a growth driver, complemented by emerging segments like pet insurance, liability, professional indemnity, and housing insurance. He estimates annual industry growth at 14%, underpinned by digital integration, hyper-personalised solutions, and data utilisation to address emerging risks. 

HDFC ERGO MD & CEO Mr. Anuj Tyagi emphasised innovation in product development, underwriting, and customer service to expand accessibility, particularly in tier two and three cities. Bajaj Allianz MD & CEO Mr. Tapan Singhel noted transformative shifts in the sector, highlighting cyber insurance, parametric disaster insurance, and surety bonds for infrastructure projects. The Insurance Regulatory and Development Authority of India (IRDAI) reported non-life insurance density rose to Rs. 2,143.98 (US$ 25) in 2022-23 from Rs. 1,886.70 (US$ 22), signalling sector growth. He advocated removing GST on health insurance to improve affordability and revising motor third-party premiums to remain unchanged for five years. Analysts expect insurance stocks to benefit from probable GST relief. Initiatives like 'Bima Sugam' and 'Bima Vistaar' aim to expand coverage, while Swiss Re projects India’s insurance sector to grow at 7.1% annually, the fastest among G20 nations, between 2024 and 2028, against the global average of 2.4%. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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