ICICI Lombard posts 29% rise in Q1 profit, driven by health and motor segments
ICICI Lombard General Insurance reported a 29% year-on-year (YoY) increase in net profit for Q1FY26, reaching Rs. 747.08 crore compared to Rs. 580.37 crore in the same quarter last year. The growth was supported by steady gains in premium income and strong investment returns. Gross Direct Premium Income (GDPI) stood at Rs. 7,735 crore, up marginally by 0.6% YoY, though growth excluding the impact of the new 1/N accounting norm was 4.8%. This IRDAI-mandated reporting format, effective from October 2024, alters how long-term premium income is recognised. Retail health insurance witnessed over 32% YoY growth, while overall health grew 3.5%. Total expenses rose 12% YoY to Rs. 5,429 crore. The combined ratio marginally increased to 102.9%, while the claims ratio improved slightly to 73% from 74% last year. The company continues to expand motor insurance through deeper segmentation and distribution reach amid competitive pressures.
Government frames new salvage policy to speed up marine disaster response
India is set to introduce a new salvage framework requiring both domestic and foreign vessels operating in Indian waters to pre-arrange tie-ups with empanelled salvage companies. The proposal, under the Merchant Shipping Bill 2025, aims to shorten response time during marine incidents such as shipwrecks and oil spills. Captain Abul Kalam Azad, Nautical Advisor to the government, noted that delays caused by appointing salvage operators post-disaster would be addressed through this pre-emptive measure. Ships transiting Indian coastal waters must partner with firms capable of responding within 12 hours. These companies—Indian or foreign joint ventures—must be equipped with adequate personnel and high-powered tugs at strategic coastal locations. The initiative follows recent incidents, including the listing of MSC Elsa and a fire on MV Wan Hai. Experts welcomed the move, highlighting the chronic shortage of marine salvage resources in India and the need for swift mobilisation during emergencies.
Tesla’s India entry sparks innovation in EV insurance market
Tesla’s foray into the Indian market is set to transform the electric vehicle (EV) insurance landscape. With the launch of its Model Y in Mumbai, priced from Rs. 60 lakh, Tesla has appointed ACKO, Zurich Kotak, and Liberty General as preferred insurance partners. These insurers have rolled out customised products covering advanced Tesla features and accessories, including charging cables, wall units, and adaptors. A notable innovation is the battery secure option, offering cover for battery repairs and replacements—a key concern in EV ownership. Comprehensive packages also include full depreciation shield, gap value protection, consumables and tyre cover, key replacement, EMI support, and personal belongings protection. The move is expected to set new standards for EV insurance, compelling domestic insurers to innovate to match Tesla’s premium ownership model. Industry experts view this as a catalyst for broader development in India’s EV ecosystem and insurance offerings.
Allianz partners with Jio Financial for reinsurance foray post-Bajaj exit
Allianz and Jio Financial Services have announced a 50:50 joint venture to enter India’s reinsurance market, marking Allianz’s strategic pivot following its exit from a two-decade partnership with Bajaj Finserv. The alliance also includes a non-binding term sheet to explore ventures in life and general insurance. This partnership is poised to challenge GIC Re’s dominance and deepen Allianz’s regulatory presence in India. Jio Fin, spun out of Reliance Industries, is rapidly evolving as a diversified financial services group with interests across credit, insurance broking, and wealth management. Allianz CEO Oliver Bäte highlighted the company’s vision to democratise financial access and serve as a foundational pillar in India’s growing risk ecosystem. If approved, this would be the first major reinsurance JV in recent times. With India now the 10th largest insurance market globally, this move is expected to reshape competition and innovation in the reinsurance space.
Non-life insurers register 8.8% premium growth in Q1, but momentum moderates
India’s non-life insurance sector recorded 8.8% growth in Gross Direct Premium Underwritten (GDPW) in Q1FY26, reaching Rs. 79,306 crore, compared to Rs. 72,859 crore in Q1FY25. The growth, however, is slower than the 13.5% reported in the same quarter last year. June 2025 alone saw a 5.2% year-on-year increase, according to data from the General Insurance Council and IRDAI. Analysts at CareEdge attributed the deceleration to the transition to the 1/n accounting rule, which affected long-term premium recognition—especially in health insurance—and subdued sales in the passenger vehicle segment. Public sector insurers outpaced private peers, aided by renewals in fire, engineering, health, and motor third-party segments. Despite these challenges, health insurance remains the largest sub-sector within non-life, although affordability issues and rising premiums have limited expansion. Standalone health insurers (SAHIs) continued to outperform other segments in the industry.
FM Global to launch innovation hub in Bengaluru, expand India operations
US-based commercial property reinsurer FM Global is set to establish its largest innovation centre outside the US in Bengaluru, alongside opening a new sales office in Mumbai. The centre, expected to launch in October, will bolster the insurer’s Asia-Pacific operations, enhance global capabilities in technology and analytics, and serve as a client experience hub. Senior VP Srinivasan Krishnamurthy highlighted India’s vibrant STEM ecosystem and growing manufacturing base as key drivers of expansion. FM Global currently collaborates with insurers like HDFC Ergo and ICICI Lombard in India. With revenues of $11 billion and a presence in 149 countries, the company is hiring talent across product, engineering, and business operations functions. The Bengaluru facility will complement FM Global’s global research footprint, which includes a Rhode Island campus, and upcoming centres in Singapore and Luxembourg. The expansion reinforces India’s strategic importance in FM Global’s long-term global growth and innovation roadmap.
IndiGo’s aircraft insurance premium rises amid global aviation losses
IndiGo has seen a 10% increase in its fleet insurance premium, with estimates suggesting a payout of $18–20 million for the renewal of coverage on its over 400 aircraft. This increase comes amid a series of aviation accidents globally, including a fatal Air India Boeing 787 crash in Ahmedabad. New India Assurance continues as the lead insurer, while Liberty Mutual leads on the reinsurance front, with the renewed policy effective from July 28. Despite IndiGo’s strong safety record and minimal claims history, recent aviation mishaps appear to have prompted insurers to reassess risk exposures. Typically, Indian insurers retain only 10–15% of aviation risks, with the remainder reinsured globally. The post-COVID aviation insurance market has remained largely soft, except for war-risk premiums which surged due to the Russia-Ukraine conflict. Industry experts suggest that global reinsurers may now adopt a more cautious underwriting stance in light of recent incidents, potentially impacting future premiums across the sector.
Jammu & Kashmir farmers remain exposed as PMFBY yet to be implemented
Despite repeated natural calamities impacting orchards in Jammu and Kashmir, the Centre’s flagship crop insurance scheme—Pradhan Mantri Fasal Bima Yojana (PMFBY)—remains unimplemented in the region, leaving thousands of growers vulnerable. On June 2, a severe hailstorm devastated apple and cherry orchards in multiple fruit-producing villages in south Kashmir, with many farmers reporting complete crop losses. Abdul Gani, a farmer from Shopian, called it the worst storm in decades. Though Revenue and Horticulture departments have conducted damage assessments, relief is being provided from the State Disaster Response Fund (SDRF), not through any insurance mechanism. Agriculture Minister Javed Ahmad Dar confirmed that compensation is being processed at the district level. While tenders were floated multiple times for insurers to administer PMFBY in the region’s horticulture sector, the response has remained tepid. The absence of crop insurance in such a high-risk region underscores a major policy gap, particularly when climate events are becoming more frequent and severe.
India enacts sweeping maritime reforms with new shipping legislation
India has modernised its century-old maritime laws with the enactment of the Carriage of Goods by Sea Act, 2025, and the Coastal Shipping Act, 2025—both recently approved by President Droupadi Murmu. The new laws align Indian maritime governance with international norms, replacing the archaic Indian Carriage of Goods by Sea Act, 1925, and provisions of the Merchant Shipping Act, 1958. The Carriage of Goods by Sea Act draws heavily from the Hague-Visby Rules, ensuring due diligence in ship seaworthiness, standardising bills of lading, and capping carrier liabilities to reduce disputes and insurance costs. The Coastal Shipping Act streamlines coasting trade regulations, mandating licensing for foreign vessels and requiring Indian ships to follow structured reporting. A National Coastal and Inland Shipping Strategic Plan will be updated biennially to map routes and integrate coastal shipping with inland waterways. Experts say the reforms will enhance India’s global trade reliability, reduce freight costs, and promote multimodal efficiency through prioritisation of Indian-owned vessels.
Zurich Kotak General Insurance launches ‘Health360’ with multi-year premium lock
Zurich Kotak General Insurance has introduced Health360, a comprehensive retail health plan that promises to keep premiums unchanged for multiple years, aiming to shield customers from medical-inflation shocks. The product targets individuals and families, positioning the fixed-premium feature as a budgeting aid for long-term health planning.
The insurer said Health360 offers broad hospitalisation cover with cashless access across its network, along with standard benefits such as pre- and post-hospitalisation (as per policy terms). The plan will be distributed through agents, bancassurance partners and digital channels, with 24×7 claims assistance.
Management noted that locking premiums for a defined period can improve persistency and expand access for first-time buyers, especially in inflationary periods. The launch underscores Zurich Kotak’s push to differentiate on predictability and service rather than frequent repricing, and aligns with the wider industry focus on customer protection and transparency in health insurance pricing.
