Page 8 - The Insurance Times September 2025

Non-life insurers register expansion. Standalone health insurers FM Global's global research footprint,
(SAHIs) continued to outperform other which includes a Rhode Island campus,
8.8% premium growth in segments in the industry. and upcoming centres in Singapore

Q1, but momentum mod- and Luxembourg. The expansion rein-
erates FM Global to launch inno- forces India's strategic importance in
FM Global's long-term global growth
India's non-life insurance sector re- vation hub in Bengaluru, and innovation roadmap.
corded 8.8% growth in Gross Direct expand India operations
Premium Underwritten (GDPW) in IndiGo's aircraft insurance
Q1FY26, reaching Rs. 79,306 crore, US-based commercial property rein-
compared to Rs. 72,859 crore in surer FM Global is set to establish its premium rises amid global
Q1FY25. The growth, however, is largest innovation centre outside the aviation losses
slower than the 13.5% reported in the US in Bengaluru, alongside opening a IndiGo has seen a 10% increase in its
same quarter last year. new sales office in Mumbai. The cen- fleet insurance premium, with esti-
tre, expected to launch in October, will
June 2025 alone saw a 5.2% year-on- mates suggesting a payout of $18-20
bolster the insurer's Asia-Pacific opera-
year increase, according to data from tions, enhance global capabilities in million for the renewal of coverage on
the General Insurance Council and technology and analytics, and serve as its over 400 aircraft. This increase
IRDAI. Analysts at CareEdge attributed comes amid a series of aviation acci-
a client experience hub.
the deceleration to the transition to dents globally, including a fatal Air In-
the 1/n accounting rule, which affected Senior VP Srinivasan Krishnamurthy dia Boeing 787 crash in Ahmedabad.
long-term premium recognition-espe- highlighted India's vibrant STEM eco- New India Assurance continues as the
cially in health insurance-and subdued system and growing manufacturing lead insurer, while Liberty Mutual leads
sales in the passenger vehicle segment. base as key drivers of expansion. FM on the reinsurance front, with the re-
Public sector insurers outpaced private Global currently collaborates with in- newed policy effective from July 28.
peers, aided by renewals in fire, engi- surers like HDFC Ergo and ICICI Despite IndiGo's strong safety record
neering, health, and motor third-party Lombard in India. With revenues of $11 and minimal claims history, recent
segments. billion and a presence in 149 countries, aviation mishaps appear to have
the company is hiring talent across
Despite these challenges, health insur- prompted insurers to reassess risk ex-
product, engineering, and business
ance remains the largest sub-sector posures. Typically, Indian insurers re-
operations functions.
within non-life, although affordability tain only 10-15% of aviation risks, with
issues and rising premiums have limited The Bengaluru facility will complement the remainder reinsured globally.
The post-COVID aviation insurance
Allianz partners with Jio Financial for reinsurance market has remained largely soft, ex-
cept for war-risk premiums which
foray post-Bajaj exit surged due to the Russia-Ukraine con-
Allianz and Jio Financial Services have announced a 50:50 joint venture to flict. Industry experts suggest that glo-
enter India's reinsurance market, marking Allianz's strategic pivot follow- bal reinsurers may now adopt a more
ing its exit from a two-decade partnership with Bajaj Finserv. The alliance cautious underwriting stance in light of
also includes a non-binding term sheet to explore ventures in life and gen- recent incidents, potentially impacting
eral insurance. future premiums across the sector.
This partnership is poised to challenge GIC Re's dominance and deepen
Allianz's regulatory presence in India. Jio Fin, spun out of Reliance Indus- Jammu & Kashmir farmers
tries, is rapidly evolving as a diversified financial services group with inter- remain exposed as PMFBY
ests across credit, insurance broking, and wealth management. Allianz CEO yet to be implemented
Oliver Bäte highlighted the company's vision to democratise financial ac-
cess and serve as a foundational pillar in India's growing risk ecosystem. Despite repeated natural calamities
impacting orchards in Jammu and
If approved, this would be the first major reinsurance JV in recent times. Kashmir, the Centre's flagship crop in-
With India now the 10th largest insurance market globally, this move is ex- surance scheme-Pradhan Mantri Fasal
pected to reshape competition and innovation in the reinsurance space.
Bima Yojana (PMFBY)-remains
8 September 2025 The Insurance Times