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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Best’s Market Segment Report: AM Best Maintains Stable Outlook on India’s Non-Life Insurance Segment

AM Best has maintained a stable outlook on India’s non-life insurance segment, owing to robust growth potential, driven by regulatory initiatives and rising insurance demand.

Insurance premiums in India’s non-life segment increased at a double-digit rate for the fiscal year that ended 31 March 2024 (FY 2024), according to the Best’s Market Segment Report, “Market Segment Outlook: India Non-Life Insurance.” This growth was fuelled by robust performance in its key lines of business – health and motor insurance. In addition, India’s economy grew 8.2% in FY 2024, due to government spending on infrastructure and increased household consumption. Signs of an economic slowdown have emerged recently, but monetary and fiscal policies are expected to support future economic growth.

The report also notes that the Insurance Regulatory and Development Authority of India is making progress to achieve its vision of “Insurance for all by 2047,” which includes several initiatives to spur insurance industry growth and coverage. The regulator’s multi-pronged approach, commonly known as “Bima Trinity,” aims to foster long-term industry growth and bolster growth through “Bima Sugam,” an electronic insurance marketplace; “Bima Vistaar,” an insurance product covering life, health, personal accident, and property risks; and “Bima Vaahak,” a women-centric distribution channel.

“We expect that India’s non-life premium growth will be bolstered over the medium term by the country’s economic development, rising insurance demand, and regulatory initiatives which are designed to increase insurance penetration and promote financial inclusion,” said Chris Lim, associate director, AM Best.

AM Best also considers recent monetary policy actions in India to be supportive of the non-life insurance segment’s investment income over the near term. India non-life insurers’ investment income is expected to benefit from domestic interest rates, which have remained stable relative to a year ago. The Reserve Bank of India has held its key policy rate — the repo rate — at 6.5% since February 2023, following a series of increases to contain inflationary pressure. Interest income is expected to remain favourable as insurers reinvest their assets into higher yielding fixed-income instruments upon maturity.

“The combination of interest rate stability and equity market performance is likely to support solid investment returns in the medium term,” said Victoria Ohorodnyk, director, AM Best. “However, maintaining disciplined investment strategies will be essential to mitigating exposure to market shocks.”

Despite strong premium growth, India’s non-life segment continued to generate underwriting losses in FY 2024, according to the report. The trend is expected to persist, as the segment continues to be challenged by excessive market competition, poor pricing discipline in core business lines and claims fraud.

To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=350435.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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