Combined Ratio Hits 113% as Industry Shifts Focus to Profitability

The latest BCG analysis indicates that the Indian general insurance industry’s combined ratio rose to 113% in FY 2025‑26, reflecting a two‑point increase driven by portfolio rebalancing and pricing adjustments. While the sector expanded its premium base, profit after tax contracted to ₹10,000 crore, down 23% annually, and return on equity fell from 9% to 6%. Insurers are now emphasizing sustainable growth, balancing volume expansion with stronger underwriting discipline.