New India Assurance’s Retail Health Push and Growth Strategy (2025)

New India Assurance, the country’s largest general insurer, is intensifying its focus on retail health insurance to drive growth and improve portfolio quality. Currently, health insurance accounts for 46% of its gross written premium (GWP), with retail contributing only 15–20% of health business. The company aims to increase retail health’s share to 30–35% by expanding its agent network, enhancing incentives, and leveraging bancassurance and online aggregators. The insurer faces challenges in motor insurance, where stagnant third-party (TP) premiums—unchanged for 5–6 years—have led to high loss ratios. In motor own damage (OD), the loss ratio stands at 116.35%, prompting a strategic shift toward better risk selection, a revised channel mix, and a move away from commercial vehicles toward private cars. Despite pressures, New India Assurance posted ₹43,618 crore GWP in FY25 and targets 15% growth in FY26. It remains focused on diversifying distribution and improving underwriting discipline, while denying knowledge of any proposed merger with other PSU insurers. The retail health push marks a key pillar in its strategy to sustain profitable growth.