SBI General Insurance, led by MD & CEO Naveen Chandra Jha, is strategically positioning itself to capture a 10 per cent market share among private and standalone health insurers within the next five years, driven by disciplined underwriting, retail segment focus, and expansion into new commercial lines.
Key Points
- SBI General Insurance aims to reach a 10 per cent market share among private and standalone health insurers within five years, growing from its current 7.17 per cent.
- The company targets a combined ratio (CoR) of approximately 107 per cent in FY27, having improved it from 112 per cent to just over 109 per cent in the past two years.
- SBI General plans to grow at least 1.3x the industry rate in FY27, focusing on retail segments like motor, health, and personal accident, while also expanding in commercial lines.
- The insurer is not opting for forbearance on International Financial Reporting Standards (IFRS) and intends to comply fully with regulatory requirements.
- The company is exploring new areas such as merger and acquisition insurance, surety bonds, and increased participation in engineering projects and the tender business.
Notwithstanding pricing pressures, regulatory changes, and higher acquisition costs, disciplined underwriting helped the company grow 1.5x the industry in 2025–26 (FY26), said Naveen Chandra Jha, managing director and chief executive officer, SBI General Insurance.
In a virtual interview with Aathira Varier/Business Standard, he said the company aims to grow at least 1.3x the industry in 2026-27 (FY27), led by retail segments and supported by commercial lines.
How was FY26 for the non-life insurance industry and for your company?
The non-life insurance industry continues to have huge potential, but it also faces huge challenges.
Competition, pricing pressures, and regulatory changes make the environment challenging.
Over the past two years, we have grown at over 1.5x the industry rate, which is commendable given these conditions.
We have improved our loss ratio by more than 8 per cent over two years.
Our solvency ratio remains strong, and in segmental growth we have consistently gained market share — 27 basis points (bps) last year and 25 bps the year before (2024-25).
We have gained share across all major segments — motor, health, personal accident, engineering, and crop.
Productivity, digital initiatives, and customer experience have also improved.
Overall, it has been a satisfactory year.
As we have entered the new year, pressures have eased somewhat, and we expect to improve our numbers further.
Addressing Combined Ratio Pressures
Your combined ratio (CoR) is quite high...
CoR has improved over the past two years, moving from around 112 per cent to a little over 109 per cent.
However, there is still work to be done.
This year, accounting changes under 1/N had an impact, which affected the combined ratio.
It did not improve as much as the loss ratio.
Acquisition costs have also risen across the industry, which has affected the ratio.
Despite these factors, we are at a satisfactory level and are targeting a CoR of around 107 per cent in FY27.
Why was CoR under pressure during the year?
Pressure on acquisition costs mainly stems from competition.
In segments such as fire, premium rates have declined. While acquisition costs have not gone up, when premiums fall, the CoR cannot remain at the same level as before.
Goods and services tax (GST)-related changes have also added to input cost pressures.
GST reductions on smaller cars have reduced insured declared value, leading to slightly higher claim ratios.
These factors have put pressure on CoR.
However, if the loss ratio is well managed — as we have done over the past two years — the company remains in a safer position.
Growth Strategy for FY27 and Beyond
How do you see growth for the company in FY27?
While we cannot predict an exact number, our focus remains on growing faster than the market.
Retail segments — motor, health, and personal accident — are our major strengths.
At the same time, we aim to improve our market share in commercial lines as well.
It is also an important year for crop insurance, as many government tenders are expected during the year.
We are hopeful of improving our business there.
Our consistent strategy has been to grow at least 1.3x the industry.
Over the past two years, we have grown more than 1.5x the industry rate.
Motor insurance is a pain point for general insurers. How are you managing the business?
We plan to maintain our 34 per cent share in motor and continue growing faster than the industry.
Our focus is on improving loss ratios through better underwriting and customer selection.
What are your targets for the health insurance segment?
Currently, we have around 3 per cent market share in overall health insurance.
Our target is to reach 5 per cent within two years.
In our portfolio, health contributes 26–27 per cent, and we aim to increase this to 28–29 per cent.
We also want a greater contribution from retail health.
Currently, about 70 per cent comes from group health; we want to bring this down to 50 per cent.
Retail health will remain a key area of focus.
New Avenues and Regulatory Compliance
Apart from retail and commercial lines, which new areas are you planning to expand into?
We are looking at merger and acquisition insurance.
We are working on surety bonds, participating in more engineering projects, and entering the tender business, which is another focus area.
We are one of the leading insurers in surety bonds, which has a huge scope, and we have strong reinsurance support as well.
The Insurance Regulatory and Development Authority of India has announced International Financial Reporting Standards and allowed forbearance for a year. Will you opt for forbearance?
We are not opting for forbearance.
We intend to comply fully with regulatory requirements, as adherence to regulation is a core principle for us.
Where do you see the company’s market share going forward?
Our vision is to reach 10 per cent market share among private insurers and SAHIs (standalone health insurers) in around five years, from the current 7.17 per cent.
We grew by 27 bps last year.
We want to grow in a sustainable and profitable manner.
