According to industry data and as reported by Business Standard, non-life insurers have registered a sharp rise in underwriting losses for FY26. Spiking from ₹302.88 billion in FY25 to ₹452.79 billion in FY26, a 50% rise has been noted. Among these, United India Insurance recorded the heaviest bulk with a sharp 113% rise in underwriting losses. In contrast, the Gross Direct Premium income of general insurers has increased by 9% on a year-on-year basis.
In a financial stability report released by the RBI in 2025, the central body had flagged three public sector general insurers, namely Oriental Insurance, United India Insurance, and National Insurance, for consistently remaining below the solvency ratio of 150 per cent. The situation has been described as a direct financial stability concern.
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What Rising Underwriting Losses Mean for PSU Insurers
Underwriting profitability matters for PSU insurers because it determines how well-equipped an insurer is to generate income by managing policies and after paying out claims. It’s critical for their financial health and continued operations. In contrast, underwriting losses indicate that the company may not possess sufficient cash to pay out future claims and therefore rests on the threshold of insolvency.
Policyholders and potential customers need to monitor general insurers functioning under heavy operating losses. Insolvency risks can translate into claim delays or denials and drive up premiums significantly. They may also shut shop due to excessive money bleeding, pushing policyholders to pursue new coverage in the middle of the policy term.
MyRupia helps individuals avoid last-minute scrambles arising from insurers’ underwriting losses. Independent industry experts provide guidance regarding your existing policies, and detailed general insurance guides can aid individuals in their search for the best insurer or policy. Talk to an expert or get your policy reviewed before it’s too late.
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