2 weeks ago
India's general insurers shift focus to profitable underwriting: BCG
Insurance companies collect money from people to protect them if something bad happens, like a car crash or a fire.
A big consulting company called BCG studied insurance companies in India.
The study found that insurance companies are now trying to make money carefully instead of just selling as many policies as possible.
Private insurance companies are doing well and staying steady.
Big private insurers made more profit this year than last year.
Government-owned insurance companies are having a harder time and losing money.
Health insurance is growing very fast in India.
Fire and crop insurance make the most profit for companies.
The whole industry collected about 3.36 lakh crore rupees last year.
This shows the insurance market in India is growing up and becoming more mature.
BCG's report covering 34 general and standalone health insurers found private insurers' combined ratio broadly steady at 109% in FY26.
Large private insurers lifted ROE to 15% from 14%, combining 7% premium growth with improved loss and combined ratios.
The four public sector insurers saw their combined ratio worsen to 128%, with ROE falling to -4% from 2%.
Industry gross direct premium income reached ₹3.36 lakh crore in FY26, up 9%, with health insurance growing 17% after GST rationalisation.
Fire and crop insurance were the most profitable lines with ROEs of 17% and 13%, while health posted a negative 7% ROE.
- Who
- Boston Consulting Group (BCG) and India's general and standalone health insurers
- What
- A BCG report shows insurers shifting from scale-driven growth to disciplined, profitable underwriting
- Where
- India
- When
- Financial year FY26
- Why
- The market is maturing as insurers prioritise sustainable pricing over pure volume
Key facts
- Report
- BCG sectoral roundup on India's general insurance industry
- Insurers covered
- 34 general and standalone health insurers
- Industry GDPI (FY26)
- ₹3.36 lakh crore, up 9%
- Private insurers' combined ratio
- 109%, improving 0.4 percentage points
- Public insurers' combined ratio
- 128%, worsened
- Large private insurers' ROE
- 15%, up from 14%
- Health insurance growth
- 17% after GST rationalisation
- Most profitable lines
- Fire (17% ROE) and crop (13% ROE)
Quotes
BCG spokesperson
Boston Consulting Group analyst
“The real story in FY27 is which insurers are successfully converting scale into disciplined, profitable underwriting.”
financialexpress.com
“These are the early signs of a market beginning to prioritise sustainable pricing over pure volume.”
financialexpress.com
Sources
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