Unlocking the path to 2x RoE

Unlocking the path to 2x RoE

Unlocking the Path to 2x RoE in general insurance

India’s US$ 32.5B (INR 3.1L Cr) general insurance industry is well-positioned to unlock greater value by strengthening underwriting profitability alongside investment income

India’s insurance growth story is creating a strong foundation for structural transformation

India’s general insurance industry has scaled rapidly, creating significant momentum for the sector. As the market matures, there is substantial opportunity to further strengthen its core economics. Despite strong premium growth, underwriting performance presents meaningful headroom for improvement, with ~13% underwriting losses as a share of net written premium. Insurers today rely on strong investment income (~21% of NWP) to overcome underwriting losses..

This presents a contrast with, as well as a compelling opportunity to align with global benchmarks. Leading global insurers and the US market consistently generate positive underwriting income, with investment returns serving as an additional driver of profitability. This has enabled stronger returns, with several players achieving high RoEs; notably, D2C-focused insurers deliver RoEs exceeding 30%, supported by greater control over pricing, underwriting, costs, and customer relationships

Exhibit 1: Indian insurers have a significant opportunity to enhance underwriting profitability while continuing to benefit from strong investment income

Exhibit 2: Major global non-life insurance players demonstrate the potential of consistent underwriting-led profitability

The biggest opportunity lies in transforming distribution economics

This underwriting profitability opportunity is structural and can be unlocked through targeted strategic action. India’s market remains highly intermediated, with ~80% of business sourced through agents, brokers, and partners. Today, customer ownership often sits with intermediaries rather than insurers, resetting economics at each renewal.

Insurers can aim for direct customer ownership by strengthening direct customer engagement and relationships over the customer lifecycle, This can create an opportunity for optimizing distribution costs, reinforcing underwriting discipline and building more durable profitability.

As insurers deepen customer ownership, the market can progressively shift toward value-led growth, improved retention, and enhanced lifetime value creation.

The road ahead: Unlocking underwriting-led profitability

Bridging the underwriting gap presents a step-change opportunity for the industry. Aligning with global benchmarks could expand profit pools by up to 2.8x and 2x RoEs toward global levels-highlighting that sustainable long-term value creation will come from strengthening core insurance economics alongside investment performance.

This shift will require greater customer ownership. Globally, D2C-led insurers outperform on underwriting by combining lower distribution costs with stronger control over pricing and customer relationships. Owning demand and engagement can be a critical lever to improving retention, risk selection, and long-term profitability

Exhibit 3: Achieving US-level underwriting performance could generate up to 2.8x profit and at least 2x RoE