New Delhi [India], April 8 (ANI): The Indian insurance sector is likely to see a strong growth in the new health and term segment, according to a report by Nuvama.
The financial services company further added in the report that choppy markets could dampen linked products’ sales.
“We estimate strong growth shall continue in the new health/term segment,” the Nuvama report said.
For general insurers, the industry growth has slowed down in January 2025 and February 2025 to just 6.6 per cent.
The report added that the aggregate sales growth is likely to stay at just 6.3 per cent.
As highlighted by the report, in January 2025, individual APE (Annualised Premium Equivalent) growth for private insurers rose 19.6 per cent, but growth slowed to just 1.6 per cent YoY in February 2025.
The choppy market conditions are expected to impact sales of linked products, while weak credit and microfinance growth could hinder the growth of credit-linked group protection.
Additionally, the report adds that the negative economic variance is likely to affect financial Year (FY) 2025 EVs (Embedded Values).
Meanwhile, as per Ministry of Finance, Indian Public Sector General Insurance Companies (PSGICs), that historically reported losses, witnessed a major turn around with all of them having become profitable again.
While Oriental Insurance Company Ltd. (OICL) and National Insurance Company Ltd (NICL) started posting quarterly profits from Q4 of FY 2023-24 and Q2 of FY 2024-25 respectively, United India Insurance Company Ltd (UIICL) posted profit in Q3 of FY 2024-25 after a gap of 7 years.
Notably, New India Assurance Company Ltd (NIACL) has consistently maintained its position as a market leader and has been making profits regularly, the ministry said.
The governement is actively promoting the insurance sector, as Budget 2025-26 aims to initiate transformative reforms across six domains which will augment our growth potential and global competitiveness during the next five years.
The FDI limit for the insurance sector will be raised from 74 to 100 per cent. This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified. (ANI)
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