The 1/n rule refers to a way through which long-term premiums are acknowledged every day, relatively than being accounted for at first of the coverage time period.
Care Rankings’ evaluation revealed that public sector common insurers noticed a 5.5% year-on-year improve in gross direct premiums in March 2025. In distinction, personal sector insurers recorded a decline throughout the identical interval. The expansion in public insurers was largely pushed by retail well being, which helped offset the weak spot in business insurance coverage.
Standalone Personal Well being Insurers (SAHIs) skilled a moderation in progress, which slowed to 11.1% year-on-year in March 2025, down from the earlier yr’s charges. This slowdown was notably evident within the second half of the fiscal yr, following the adoption of the 1/n rule. Nonetheless, SAHIs continued to realize market share, whereas personal common insurers noticed a decline in theirs.
Personal non-life insurance coverage firms noticed their general market share improve to 65.4% in FY25, up from 61% in FY23, reflecting the broader progress hole between private and non-private sector gamers. Regardless of the slowdown, the medical health insurance section remained the most important and noticed a shift in market share from 35.3% in FY23 to 38.6% in FY25, pushed by constant outperformance by SAHIs.
The report additionally identified that regardless of slower general progress, the retail section remained resilient, outperforming different segments each in March 2025 and FY25. Care Rankings attributed the broader business slowdown to components like the tip of the post-COVID growth and rising medical inflation, which made premiums dearer and impacted affordability.The Group Well being section remained the most important within the sector, though its progress was slower in FY25 in comparison with FY24. Authorities well being schemes additionally continued to say no. Whereas SAHIs targeted primarily on retail medical health insurance, common insurers dominated the group well being enterprise. As competitors within the medical health insurance market is anticipated to accentuate, the dynamics inside the sector are more likely to evolve within the medium time period.