General insurers’ FY26 underwriting losses widen 46% to ₹45,279 crore
India’s general insurance industry recorded ₹45,279 crore in underwriting losses in FY26, up from ₹31,043 crore a year earlier, despite 9% growth in gross direct premium to ₹3.36 lakh crore. PSU insurers accounted for ₹29,071 crore of losses.
What happened
India general insurance industry · India’s general insurance industry reported worsening FY26 underwriting losses of ₹45,279 crore despite 9% premium growth.
Key facts
- ₹45,279 crore FY26 industry underwriting losses
- ₹31,043 crore FY25 industry underwriting losses
- 9% gross direct premium growth to ₹3.36 lakh crore in FY26
- ₹29,071 crore FY26 PSU underwriting losses
- ₹16,682.34 crore FY26 private-insurer underwriting losses
What changed
India’s general insurance industry reported worsening FY26 underwriting losses of ₹45,279 crore despite 9% premium growth. Tata AIG posted the largest private-sector loss, while Bajaj General Insurance delivered the best underwriting performance among private insurers.
Why this matters
FY26’s 46% rise in underwriting losses despite 9% premium growth underscores the need for sharper pricing, claims control and portfolio discipline, particularly at PSU insurers.
What to watch
- Quarterly combined ratios and claims ratios for PSU insurers versus private peers.
- IRDAI approval or industry adoption of motor and health premium increases.
- Medical inflation, vehicle repair-cost inflation, and frequency/severity of motor claims.
- Monsoon, flood, cyclone, and crop-loss events that raise catastrophe claims.
- Government capital-infusion announcements or restructuring measures for PSU insurers.