Near-term pricing, growth worries for general insurance companies

The general Insurance sector is facing challenges due to aggressive discounting in property and casualty insurance, prospects of a flat motor third party (TP) tariff outlook, and low February numbers.

 

In February 2025, the gross direct premium income (GDPI) for general insurers dropped 2.8 per cent year-on-year (Y-o-Y). Both public (down 4.3 per cent Y-o-Y) and private (down 5.2 per cent Y-o-Y) multi-line insurers suffered drops in GDPI. Among listed players, ICICI Lombard General Insurance or ICICI Lombard (down 0.7 per cent Y-o-Y) and Go Digit General Insurance (down 7.3 per cent Y-o-Y) saw contraction.

 

Insurers have underpriced high-risk coverage