Non-Life Premiums Report Muted Growth in Nov-24 due

to Changes in Reporting Requirements, Retail Health and

Motor TP Support Growth
December 20, 2024 l BFSI Research

Overview
In November 2024, the non-life insurance industry reported a premium of Rs 21,671.4 crore rising by a modest 4.4% after breaching the Rs 30,000 crore mark
in October 2024 and compared to an increase of 8.1% in November 2023. The industry’s performance has been impacted by a revision in the reporting format,
which now excludes premiums from long-term policies. As a result, the growth rates reported for the current year cannot be compared with the previous year's
figures. The increase can be attributed to Retail Health and Motor TP which has offset a drop in fire and near flat numbers in Motor OD segments.

Figure 1: Movement in Monthly Premium (Rs crore)

Premium in Premium in Premium in Premium in FY22 vs FY23 vs FY24 vs FY25 vs
Month
FY22 FY23 FY24 FY25 FY21 (%) FY22 (%) FY23 (%) FY24 (%)
April 17,251.2 21,276.3 25,616.1 29,679.0 22.0 23.3 20.4 15.9
May 12,294.9 15,404.5 18,196.0 20,907.5 12.9 25.3 18.1 14.9
June 14,761.0 17,808.8 20,451.9 22,170.9 6.6 20.6 14.8 8.4
July 20,157.3 23,395.3 26,567.3 29,032.3 19.4 16.1 13.6 9.3
August 21,867.9 24,474.5 23,558.3 24,554.3 24.4 11.9 -3.7 4.2
September 22,246.3 22,838.7 29,476.3 27,550.9 -2.7 2.7 29.1 -6.5
October 17,681.4 20,954.9 23,821.1 30,378.0 11.2 18.5 13.7 27.5
November 15,735.2 19,207.4 20,756.8 21,671.4 5.5 22.1 8.1 4.4
December 19,099.3 21,874.6 25,098.2 8.1 14.5 14.7
January 21,382.9 25,541.6 27,220.6 15.8 19.4 6.6
February 16,558.9 19,873.6 22,378.4 5.2 20.0 12.6
March 21,767.8 24,244.5 26,647.5 11.8 11.4 9.9
Source: General Insurance Council, IRDAI; Note: IRDAI has recently revised the formats for reporting, and they have excluded premium from long term policies from reporting of
premiums with effect from October 1, 2024. It is assumed that all companies have deducted the long-term premiums accordingly for the current year only following IRDAI formats.
Therefore, the growth rates reported for the current year cannot be compared with the previous year's figures.

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 Non-Life Premiums Report Muted Growth in Nov-24 due to Changes in Reporting Requirements; Retail Health and
Motor TP Support Growth

Figure 2: Movement in Gross Direct Premium Underwritten (Rs crore)

YTD YTD
Nov-23 Nov-24
Insurers Nov-22 Nov-23 Nov-24 YTD FY23 YTD FY24 YTD FY25 FY24 FY25
Growth Growth
Growth Growth
Public General Insurers 6,494.1 6,505.7 6,689.4 0.2 2.8 54,741.1 59,480.5 62,766.7 8.7 5.5
Specialized PSU Insurers 135.9 210.2 622.2 54.6 196.0 9,675.2 7,043.0 6,917.5 -27.2 -1.8
Private General Insurers 10,551.5 11,558.0 11,628.5 9.5 0.6 85,317.8 1,02,269.5 1,11,824.1 19.9 9.3
SAHI 2,026.2 2,483.0 2,731.3 22.5 10.0 15,625.8 19,584.3 23,650.1 25.3 20.8
Total 19,207.8 20,756.8 21,671.4 8.1 4.4 1,65,359.9 1,88,377.3 2,05,158.4 13.9 8.9
Source: General Insurance Council, IRDAI

• Public Sector General Insurers’ November 2024 numbers growing at 2.8% outpaced their private peers for the second month in a row, which grew by 0.6%
for the month primarily due to changes in the reporting requirements. However, for the YTD period, private insurers’ growth has consistently outpaced their
public peers. This growth can be primarily attributed to retail health, and motor offsetting the decline in the fire.

• Meanwhile, specialised insurers' monthly growth numbers have been volatile growing nearly 3x in November 2024 after a 150% for October 2024 after
reducing by 61.7% in September 2024. For the YTD period, the degrowth has continued with a fall of 1.8% compared to a fall of 27.2% in YTDFY24 as crop
insurance premiums have witnessed a shift to the general insurers from Agriculture Insurance Co of India Ltd.

• Standalone Private Health Insurers (SAHI) continued their y-o-y growth momentum at 10.0% in November 2024, which was roughly half the rate reported
last November. SAHIs continue to gain a share in retail health from Public General Insurers.
• The overall market share of private non-life insurance companies has witnessed a sustained increase to 66% for YTDFY25 from 63% in FY24 and 61% in
FY23, highlighting the persistent growth differential between the public and private sectors.

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 Non-Life Premiums Report Muted Growth in Nov-24 due to Changes in Reporting Requirements; Retail Health and
Motor TP Support Growth

Figure 3: Movement in Health Premiums (Rs crore)

Total Premium Rs crore YoY Growth (%) Total Premium Rs crore YTD Growth (%)
Segment
Nov-22 Nov-23 Nov-24 Nov-23 Nov-24 YTD FY23 YTD FY24 YTD FY25 FY24 FY25
Health 6,814.2 7,670.0 7,607.3 12.6 -0.8 58,175.9 70,476.1 79,144.6 21.1 12.3
Group 3,691.2 4,061.4 4,209.4 10.0 3.6 30,943.8 37,241.6 42,424.8 20.4 13.9
Retail 2,613.2 3,036.9 3,274.7 16.2 7.8 21,012.8 24,937.9 28,849.8 18.7 15.7
Others 509.8 571.7 123.2 12.1 -78.4 6,219.4 8,296.7 7,870.0 33.4 -5.1
Source: General Insurance Council, IRDAI

• Health insurance premiums continue to be the largest segment of the non-life insurance industry. Despite a marginal dip in the current month for the
aggregate health segment, SAHIs have grown at 10.0% indicating their outperformance. The segment’s YTD growth has increased its market share from
35.2% for YTD FY23 to 38.6% for YTD FY25. The public sector health insurance business has continued to lag its private peers.

o The Retail segment despite growth reducing compared to the previous periods has continued to be the fastest growing segment in November 2024, as
well as for YTD FY25 indicative of sustained demand.
o The Group Health segment remains the largest segment due to enhanced coverage and premium rationalisation. The segment witnessed a lower growth
for YTD FY25 compared to YTD FY24.
o Government schemes fell in November 2024 after rising sharply last month, however, the YTD numbers continue to remain tepid.
o SAHI focuses on retail, while general insurers account for a dominant share of the group business. The premium growth of the SAHI continues to be
higher than the industry average. Further, with IRDAI having already approved two new SAHIs, competition is likely to intensify in the medium term.

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 Non-Life Premiums Report Muted Growth in Nov-24 due to Changes in Reporting Requirements; Retail Health and
Motor TP Support Growth

Figure 4: Movement in Non-Life Premiums excluding Health Premiums (Rs crore)

Total Premium Rs crore YoY Growth (%) Total Premium Rs crore YTD Growth (%)
Segment
Nov-22 Nov-23 Nov-24 Nov-23 Nov-24 YTD FY23 YTD FY24 YTD FY25 FY24 FY25
Motor 7,396.5 8,290.8 8,604.4 12.1 3.8 50,337.0 57,927.6 63,023.1 15.1 8.8
OD 2,792.5 3,386.6 3,376.2 21.3 -0.3 19,970.5 23,826.5 26,146.3 19.3 9.7
TP 4,603.9 4,904.3 5,228.2 6.5 6.6 30,366.5 34,101.2 36,876.8 12.3 8.1
Fire 1,411.3 1,550.3 1,136.4 9.8 -26.7 16,942.0 18,154.9 17,226.4 7.2 -5.1
Crop Ins. 1,551.1 1,165.2 1,985.9 -24.9 70.4 20,469.1 20,275.1 21,147.4 -0.9 4.3
Others 2,034.6 2,080.6 2,337.5 2.3 12.4 19,436.0 21,543.8 24,617.0 10.8 14.3
Total 12,393.6 13,086.9 14,064.1 5.6 7.5 1,07,184.0 1,17,901.3 1,26,013.8 10.0 6.9
Source: General Insurance Council, IRDAI

• If we observe the growth of the non-life insurance industry excluding health, it stands at 6.9% in YTD FY25 compared to the 8.9% level if health is included
in the analysis. Further, a sizeable proportion of this 6.9% growth is on account of the motor insurance segment, which accounts for approximately 50% of
the non-life insurance excluding health. In YTD FY25, Motor insurance reached Rs 63,023.1 crore growing at 8.8% vs 15.1% in YTD FY24.

o Motor OD grew by 9.7% (vs. 19.3% for YTD FY24) and motor TP rose by 8.1% (vs. 12.3% for YTD FY24). Passenger vehicle domestic sales in November
fell and resulted in tepid Motor OD growth, while flat TP tariffs have slowed the growth in motor TP. The motor OD segment has continued to grow
faster than the motor TP segment.
o Fire premiums declined by 26.7% for November and by 5.1% for YTDFY25. Meanwhile, crop insurance grew by 4.3% for YTDFY25 despite substantial
growth for November 2024.

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 Non-Life Premiums Report Muted Growth in Nov-24 due to Changes in Reporting Requirements; Retail Health and
Motor TP Support Growth

Figure 5: Movement in Segment Market Share by Premiums (In %)

38.6 YTDFY23 YTDFY24 YTDFY25

35.2
30.4 30.7

20.7
18.7 18.4 18.0
12.7 14.1 12.7
12.1 12.4
10.2 10.3
8.4
3.8 3.8

Health Group Retail Others Motor OD TP Fire Crop Insurance

Source: General Insurance Council, IRDAI

CareEdge Ratings View

“In November 2024, the non-life insurance industry reported a premium of Rs 21,671.4 crore rising by a modest 4.4% after breaching the Rs 30,000-crore mark
in October 2024 and compared to an increase of 8.1% in November 2023. The increase can be attributed to Retail Health and Motor TP which has offset a drop
in fire and near flat numbers in Motor OD segments The industry’s performance has been impacted by the revision in a reporting format that excludes premiums
from long term policies from reporting of premiums and hence the growth rates reported for the current year cannot be compared with the previous year's
figures. This differential is likely to persist till the base effect is mitigated.” said Saurabh Bhalerao, Associate Director, CareEdge Ratings.

“The growth story of the health insurance sector is expected to continue, with SAHIs continuing to dominate the retail insurance space. Meanwhile, the growth
of the motor segment remains concomitant with the vehicle sales and revision in TP tariffs. Overall growth would be supported by a favourable regulatory
environment and the Bima Trinity. The proposed Insurance Amendment Act, 2024 around the composite license, 100% FDI in insurance companies and capital
requirements have been designed to enhance market penetration. CareEdge Ratings estimates that the Indian non-life insurance market will grow at a rate of
approximately 13-15% in the medium term. However, intensified competition, and an uncertain international geopolitical environment, could impact the non-life
insurance sector,” said Sanjay Agarwal, Senior Director, CareEdge Ratings.

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 Non-Life Premiums Report Muted Growth in Nov-24 due to Changes in Reporting Requirements; Retail Health and
Motor TP Support Growth

Contact
Sanjay Agarwal Senior Director [email protected] +91 - 22 - 6754 3582 / +91 - 81080 07676
Saurabh Bhalerao Associate Director – BFSI Research [email protected] +91 - 22 - 6754 3519 / +91 - 90049 52514
Mradul Mishra Media Relations [email protected] +91 - 22 - 6754 3596

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