Summary:

India’s general insurance industry is expected to grow by a healthy 13% YoY in gross written premium (GWP) in FY26, according to India Ratings, signaling a steady rise driven mainly by value growth rather than new customer additions. This comes after an 8.5% YoY increase in FY25, down from 12.8% in FY24. Experts noted that rising inflation and firmer reinsurance rates in certain segments are likely to support value-based expansion. Improved affordability, innovation and wider reach will continue to aid overall volume growth across the sector.

Standalone Health Insurers (SAHIs) are expected to play a major role, with a strong 21% YoY growth projected for FY26. Their share of total GWP touched 41% in FY25 (April to December), supported by growing health awareness post pandemic and rising medical inflation, both pushing up demand and insured sum values. Recent premium revisions in the health space have also resulted in increased policy porting, indicating evolving and more aware consumers. On the commercial side, activity is likely to rise in FY26, driven by the government’s continued capital expenditure focus. While public insurers still lag private firms, reforms and strategic capital infusions show potential. Meanwhile, urban India shows much higher insurance coverage than rural areas, pointing to the need for broader distribution, better product-market alignment and greater affordability in villages. Insurers continue to benefit from stable investment income and capital gains, which offset pricing pressures and support underwriting margins and sector return ratios.

Source: IBEF

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