Insurance industry claims rise in FY25 on higher life, general payouts | Insurance News – Business Standard

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Claims paid by the insurance industry increased in FY25, led by a rise in life insurance death claims and higher net incurred claims reported by general insurers across segments

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Claims paid by the insurance industry grew in the financial year 2024-25 (FY25). The life insurance industry paid death claims worth Rs 47,489.64 crore, up 12.31 per cent year-on-year (Y-o-Y) in FY25. The general insurance sector saw a 9.5 per cent Y-o-Y rise to Rs 1.88 trillion from the year-ago period.

The death claims paid by the life insurance industry in FY24 stood at Rs 42,284 crore. The life insurance industry paid total benefits of Rs 6.30 trillion in FY25, which constituted 71.92 per cent of the net premium.

Meanwhile, in FY25, aggregate net incurred claims reported an increase of 9.46 per cent over the previous year and amounted to Rs 1.88 trillion from Rs 1.72 trillion in FY24. Separately, the public sector general insurers, private sector general insurers and standalone health insurers reported an increase of 4.41 per cent, 13.05 per cent and 27.36 per cent, respectively, while specialised insurers reported a decrease in incurred claims of 26.7 per cent.

During FY25, general insurers, including specialised insurers, paid total general insurance (excluding health) claims amounting to Rs 1.07 trillion. Of this, private general insurers paid 58.9 per cent, or Rs 62,937 crore, while PSU general insurers paid 34.1 per cent, or Rs 36,372 crore.