Robust Growth Anticipated in Indian Health and Term Insurance Amidst Market Volatility

A report by Nuvama highlights strong growth in India's health and term insurance segments, despite market volatility impacting linked products. Indian public sector insurers have shown impressive profitability in recent quarters. Additionally, the government plans to raise FDI limits to 100% to attract more investment.

According to a recent report by financial services company Nuvama, India's insurance sector is poised for significant growth, particularly in the health and term segments. However, volatile market conditions are expected to curb the sales of linked products, the report warns.

The Nuvama report indicates that while new health and term segments are thriving, the overall industry growth for general insurers has decelerated to 6.6% in early 2025. This moderation is reflected in the rising individual APE growth of 19.6% in January 2025, which slowed to a mere 1.6% year-on-year in February 2025.

Amid these challenges, Indian public sector general insurance companies have turned around their financial results, posting profits for the first time in years. The Finance Ministry attributes these gains to consistent performances from companies like New India Assurance, while also announcing an increase in FDI limits to boost sector growth.

(With inputs from agencies.)