Public sector normal insurance coverage firms outperformed their non-public sector rivals within the first quarter ended June 2025, recording a 14.6 per cent enhance in gross premiums underwritten—nicely above the trade common of 8.84 per cent. In addition they succeeded in increasing their market share throughout this era regardless of an total slowdown within the progress in medical health insurance premium.
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The 4 PSU normal insurers reported a premium mobilisation of Rs 27,787 crore for the June 2025 quarter as in opposition to Rs 24,233 crore a yr in the past, based on figures obtainable with the Basic Insurance coverage Council. Business chief New India Assurance posted a progress of 15.2 per cent at Rs 12,299 crore, Oriental Insurance coverage confirmed a progress of 21.4 per cent, Nationwide Insurance coverage 14.93 per cent and United India 7.17 per cent progress.
New India Assurance additionally elevated its market share from 14.67 per cent in June 2024 quarter to fifteen.51 per cent within the June 2025 quarter. Oriental Insurance coverage additionally elevated its market share from 6.46 per cent to 7.34 per cent throughout the identical interval and Nationwide Insurance coverage from 4.78 per cent to five.04 per cent.
On the identical time, amongst non-public gamers, ICICI Lombard confirmed a progress 0.61 per cent at Rs 7734.86 crore in premium underwritten for the June quarter. Bajaj Allianz Basic Insurance coverage posted a progress of 9.63 per cent and Reliance Basic Insurance coverage 1.60 per cent. ICICI Lombard’s market share declined from 10.57 per cent to 9.75 per cent in June 2025 quarter.
The general trade premium underwritten elevated by 8.84 per cent to Rs 79,301 crore for the June quarter, based on the GI Council. Whole well being premium underwritten elevated by 8.12 per cent to Rs 32,343 crore within the June 2025 quarter as in opposition to a progress of 16.58 per cent within the June 2024 quarter.
In June 2025, the non-life insurance coverage trade reported a premium of Rs 23,422.5 crore, representing a 5.2 per cent progress in comparison with the 8.4 per cent progress reported in June 2024. “The trade’s transition to the 1/n rule, slowing well being, and subdued PV progress have affected the trade’s efficiency, partially offset by renewals within the fireplace and engineering section,” stated Saurabh Bhalerao, Affiliate Director of CareEdge Scores.
The “1/n rule” in insurance coverage refers to an accounting technique the place commissions for long-term insurance coverage insurance policies are acknowledged evenly over the period of the coverage, slightly than being recorded totally on the outset. This represents a shift from earlier practices that allowed full fee recognition upfront. Because of this, this variation impacts how insurers report their premiums, usually resulting in a decrease reported premium within the preliminary interval — notably impacting public sector normal insurers.
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Insurance coverage trade sources say that premium collections from government-backed well being schemes have dropped sharply, as many state and central applications have shifted from insurance-based fashions to trust-based funding. This transformation has diminished the general premium influx for insurers.
On the identical time, steep hikes in medical health insurance premiums — pushed by rising medical prices, an 18 per cent GST, and better hospital bills — have put strain on family funds. Because of this, shopper demand has declined, and retail medical health insurance progress has slowed to round 10–13 per cent in FY25, in comparison with 20–25 per cent in earlier years.
Non-life insurance coverage premiums crossed the Rs 3-lakh crore mark in FY25, pushed by supportive rules, rising Insurtech adoption, accelerating digitalisation, and an increasing center class. The federal government’s Bima Trinity push is poised to speed up progress within the non-life insurance coverage sector. Standalone well being insurers are anticipated to take care of their dominance within the retail well being house.
“On the identical time, the trajectory of motor insurance coverage will intently comply with car gross sales and the upcoming revisions to third-party tariffs. The proposed rollout of composite licences might reshape the aggressive panorama within the medium time period. Nonetheless, rising competitors and world geopolitical uncertainties will stay essential watchpoints for the sector,” it stated.
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