2 weeks ago
India's General Insurance Industry Grows 9% to ₹3.36 Lakh Crore
Insurance companies in India help people protect their money if they get sick, have an accident, or face other problems.
Last year, these companies collected more money from customers than the year before.
The total money they collected grew by 9%.
Health insurance grew the fastest because taxes were made simpler.
Motor insurance also grew, though not as quickly.
But even though companies collected more money, they made less profit than before.
This happened because they paid out more claims and changed how they set prices.
Big private insurance companies did the best and kept more profit.
A person named Pallavi Malani, from the Boston Consulting Group, says the industry is growing up and learning to be careful with money.
That means companies want fair prices and to stay healthy instead of just collecting lots of money.
India's general insurance industry grew 9% year-on-year in FY26, with gross direct premium income reaching ₹3.36 lakh crore.
Private insurers led expansion with 10% GDPI growth versus 8% for public sector insurers.
Industry profit after tax fell 23% year-on-year to ₹10,000 crore, with return on equity declining to 6% from 9%.
Health insurance grew 17% on GST rationalization, while motor grew close to 9% amidst renewal-heavy portfolios.
BCG said the industry is entering a more mature phase prioritizing sustainable pricing over pure volume.
- Who
- India's general and standalone health insurers, analyzed in a report by Boston Consulting Group (BCG).
- What
- The general insurance industry's gross direct premium income grew 9% year-on-year to ₹3.36 lakh crore in FY26.
- Where
- India, with the report headlined from New Delhi.
- When
- Fiscal year FY26; the BCG report was released on a Tuesday.
- Why
- Growth was driven by health and motor segments as insurers recalibrated pricing and shifted toward disciplined, sustainable underwriting.
Key facts
- Gross Direct Premium Income
- ₹3.36 lakh crore, up 9% YoY
- Gross Written Premium
- ₹3.44 lakh crore, up 10% YoY
- Industry Profit After Tax
- ₹10,000 crore, down 23% YoY
- Combined Ratio
- 113%, up 2 points
- Return on Equity
- 6%, down from 9% a year earlier
- Private Insurer GDPI Growth
- 10%
- Public Insurer GDPI Growth
- 8%
- Health Segment Growth
- 17%, lifted by GST rationalization
Quotes
Pallavi Malani
Managing Director & Partner, Boston Consulting Group, India Lead – Insurance
“"The real story in FY27 is which insurers are successfully converting scale into disciplined, profitable underwriting."”
freepressjournal.in
“"The Indian general insurance industry continues to grow, and it is entering a more mature phase."”
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