While India’s general insurance industry celebrates a decade of 11 per cent annual growth, an independent study by Praxis Global Alliance finds scale has not built profitability.India’s top insurers run combined ratios of 110–113 per cent, spending more than they earn on every policy while their global D2C counterparts operate profitably at 84–89 per cent.The report --General Insurance Industry Economics Uplift -- is based on analysis of company disclosures, IRDAI data, benchmarking against global insurers and a consumer survey of 1,203 motor and health insurance customers across India.Madhur Singhal, Managing Partner, Praxis Global Alliance said Indian general insurance has achieved a strong scale, but underwriting profitability still remains well below global benchmarks.The analysis suggests that moving closer to global underwriting standards could materially expand industry profit pools and potentially double RoEs over time, he said.The next phase of value creation will likely come from stronger underwriting discipline, customer ownership and retention-led growth, he added.Vishal Bhave, Practice Leader, Insurance, Praxis Global Alliance said regulatory developments around commission transparency, Bima Sugam, Ind AS 117, and risk-based capital frameworks could gradually shift the industry toward healthier customer economics and more sustainable profitability.Insurers that build direct customer engagement and stronger ownership of customer relationships could be structurally better positioned for long-term value creation, he said.IRDAI Chairman Ajay Seth has said commissions must align with long-term customer value, pointing out that mandated products such as third-party motor insurance should not cost insurers the same to acquire as new business.India’s general insurance market reached ₹3.1 lakh crore ($34 billion) in FY25, with health and motor together accounting for over 70 per cent of premiums.India’s top insurers carry an underwriting loss of about 13 per cent of net written premium, offset only by investment income of about 21 per cent, meaning profitability is driven not by the business of insuring, but by returns on invested funds.The Praxis study finds that if Indian insurers simply matched global underwriting benchmarks, without any change in premium volumes, the industry’s profit pool would expand 2.8 times and RoE would more than double.The Praxis consumer survey of 1,203 motor and health insurance customers reveals a significant gap between what the intermediary model promises and what customers actually receive.Published on May 23, 2026