India’s non-life insurance sector witnessed a strong rebound in September 2025, recording a 13.2% year-on-year rise in gross direct premiums — a significant recovery after months of slower growth. The upswing reflects renewed demand in key insurance segments amid improving economic activity.
Key Highlights
- Total Premiums: Gross direct premiums reached around ₹31,100 crore in September 2025, compared to ₹27,550 crore a year earlier.
- Half-Year Performance: For April–September 2025, total premiums stood at ₹1.65 lakh crore, up 7.3% YoY.
Segment Growth
- Motor, Fire & Engineering: Drove most of the rebound through strong renewals.
- Health Insurance: Grew moderately at about 6.9%, with retail health up around 7%.
- Specialised Lines: Surged over 260% due to higher demand and a low base effect.
Reasons for Growth
- Higher policy renewals and improved consumer confidence.
- Expanding motor and infrastructure activity.
- Wider adoption of digital insurance and InsurTech channels.
- Supportive regulatory and tax measures aiding affordability.
Outlook
The rebound signals renewed momentum in India’s insurance sector. Going forward, sustained growth will depend on new policy sales, claim management efficiency, and innovation in digital distribution. With stronger consumer awareness and regulatory support, non-life insurers are positioned for continued expansion through FY 2025–26.
Conclusion
The 13.2% YoY premium rise in September 2025 highlights a resilient recovery for India’s non-life insurance industry. Strong performance across core segments and digital adoption indicate that the sector is regaining pace — laying a foundation for steady growth in the coming quarters.
FAQs
1. What was the growth rate of the non-life insurance sector in September 2025?
Ans: The sector recorded a 13.2% year-on-year increase in gross direct premiums, signalling a strong rebound compared to the slower growth seen in previous months.
2. What was the total premium collected during September 2025?
Ans: Non-life insurers reported ₹31,100 crore in gross direct premiums, up from about ₹27,500 crore in September 2024.
3. Which segments contributed most to this growth?
Ans: The main contributors were motor, fire, and engineering insurance, supported by higher policy renewals and improved industrial activity. Specialised lines such as credit and crop insurance also saw exceptional growth.
4. How did health insurance perform during this period?
Ans: Health insurance grew moderately by about 6.9% year-on-year, with retail health policies rising around 7%, reflecting steady but slower expansion compared to other segments.
5. What factors drove the rebound in September 2025?
Ans: Key drivers included:
- Renewed vehicle sales and infrastructure projects.
- Increased insurance awareness and digital adoption.
- Regulatory and tax support improving affordability.
- Stronger renewal cycles after a weak August period.
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