Archive · 23 Nov 2025
General Insurance Industry Growth & Challenges Post GST Waiver
The general insurance industry in India has seen growth of around 11-12% despite a dip in reported growth due to regulatory changes.
Health insurance is now the largest segment.
The industry is facing cost pressures after the GST waiver on insurance premiums, and profitability is weak.
To improve, the industry needs to increase motor third-party pricing, improve pricing discipline, reduce expenses, and expand reach.
General insurance industry grew 7.3% YTD in Sep 2025, but underlying growth is around 11-12%.
Health is now the largest segment, accounting for about 39% of total premiums.
HDFC ERGO's largest segment is health, with 46-47% of business in accident and health.
Industry facing cost pressures post GST waiver, some load passed on to distributors.
Weak industry profitability; measures needed include TP price increases and pricing discipline.
- Who
- General insurance industry in India
- What
- Experiencing growth and facing challenges post GST waiver on insurance premiums
- When
- Year-to-date (YTD) September 2025 and onwards
- Where
- India
- Why
- To improve profitability and expand reach
Industry View
Regulatory View
GST Waiver Impact
Industry View
Created input tax credit mismatch, increasing insurer costs
Regulatory View
Passed on a portion of the load to distributors to sustain customer benefit
Listing of Insurers
Industry View
Weak industry profitability and Ind AS/RBC instability may delay listings
Regulatory View
No listing plans at this time, but ultimately a shareholder's decision
- Growth (YTD Sep 2025)
- 7.3%
- Underlying industry growth
- Around 11-12%
- Largest segment
- Health (39% of total premiums)
- HDFC ERGO's largest segment
- Accident and health (46-47% of business)
- Industry combined ratio
- Around 112-115%