The Indian non-life insurance sector has witnessed significant growth, with a 19.5% year-over-year increase in premium income. According to the India Brand Equity Foundation (IBEF), the total premium income for non-life insurers in India stood at Rs 1,14,972 crore ($13.8 billion) in the financial year 2024 (FY24). This substantial growth can be attributed to the rising demand for health and motor insurance policies.
The growth in the non-life insurance sector was primarily driven by three key segments: group health insurance, motor insurance, and crop insurance. Group health insurance saw a significant increase in demand, as individuals and organizations increasingly recognized the importance of health coverage. This shift towards health insurance can be attributed to the growing awareness of the need for financial protection against medical emergencies.
Motor insurance also contributed significantly to the growth of the non-life insurance sector. With the increasing number of vehicles on the road, the demand for motor insurance policies has risen, driven by the mandatory requirement for third-party liability insurance. Furthermore, the growth in the sale of new vehicles has also led to an increase in the demand for comprehensive motor insurance policies.
Crop insurance was another key driver of growth in the non-life insurance sector. The Indian government’s initiatives to promote crop insurance have led to an increase in the adoption of such policies among farmers. The Pradhan Mantri Fasal Bima Yojana (PMFBY), a government-sponsored crop insurance scheme, has been instrumental in providing financial protection to farmers against crop failures and other agricultural risks.
The growth in the non-life insurance sector is expected to continue, driven by increasing awareness and demand for insurance products. The Indian government’s initiatives to promote insurance penetration, particularly in the rural and underserved segments, are likely to further boost growth in the sector. As the Indian economy continues to grow, the demand for non-life insurance products is expected to rise, driven by the increasing need for financial protection against various risks. Overall, the Indian non-life insurance sector is poised for significant growth, driven by the rising demand for health, motor, and crop insurance policies.