India’s non-life insurance sector recorded a sharp deterioration in underwriting performance in the 2025–26 financial year, with aggregate underwriting losses rising by around 50% from the previous year despite continued growth in premium income.
Underwriting losses across the sector increased from INR302.88 billion in 2024–25 to INR452.79 billion in 2025–26. The rise highlights growing pressure on insurers to manage claims and other costs even as the overall volume of insurance business continues to expand.
According to industry data cited in a report by the financial daily Business Standard, gross direct premium income of non-life insurers increased by nearly 9% year on year to INR3.36 trillion in 2025–26. The growth came after the rationalisation of Goods and Services Tax (GST) rates and indicates that premium collections continued to expand during the financial year.
The improvement in premium income, however, did not translate into stronger underwriting results. State-owned general insurers were among the biggest contributors to the deterioration. The combined underwriting loss of the four public-sector general insurers rose by nearly 58.3% year on year to INR290.7 billion in 2025–26.
The figures underline the significant financial pressure facing government-owned insurers. Although their premium income forms part of the broader expansion of India’s insurance market, the increase in underwriting losses suggests that the cost of covering risks remained substantial during the year.
Private general insurers also reported higher underwriting losses, although the increase was considerably lower than that recorded by their public-sector counterparts. Their combined underwriting loss rose by 18.9%, reaching INR166.82 billion in 2025–26, compared with INR140.33 billion a year earlier.
Health insurance providers faced an even sharper deterioration. Standalone health insurers reported underwriting losses of INR266.68 billion in 2025–26, up 63% from INR163.52 billion in 2024–25. The scale of the increase makes health insurance one of the areas under particularly heavy pressure within the wider non-life insurance industry.
Among prominent standalone health insurers, Care Health Insurance Ltd recorded an underwriting loss of INR6.60 billion in 2025–26. This represented a 101.3% increase from the INR3.28 billion loss reported in the previous financial year.
Underwriting performance is a key indicator of an insurer’s core insurance business. It broadly reflects the balance between premiums collected and the costs associated with claims and other insurance-related expenses. An insurer can therefore increase premium income while still reporting an underwriting loss if claims and associated costs rise faster than revenue.
The latest figures present a mixed picture for India’s non-life insurance market. Premium income continued to grow, reaching INR3.36 trillion, but underwriting losses expanded at a much faster pace. Public-sector general insurers experienced a particularly steep deterioration, while standalone health insurers also recorded substantial increases in losses.
For insurers, the challenge is therefore not simply to expand premium collections but also to improve the quality and profitability of the underlying insurance business. Effective risk assessment, claims management and cost control are central to achieving a healthier balance between business growth and underwriting performance.
The 2025–26 figures show that India’s non-life insurance industry is continuing to expand, but the rise in underwriting losses points to significant pressure beneath that growth. The ability of insurers to control losses while maintaining premium momentum will remain an important factor in the sector’s financial performance.
