Shriram General Insurance Enters Health Insurance Market, Targets 15 Percent Non-Motor Revenue by FY30

Shriram General Insurance has initiated its entry into the health insurance segment as part of its broader strategy to diversify its product portfolio beyond motor insurance. The Jaipur-based general insurer aims to generate approximately ₹100 crore in individual health policies over a period of two years, with total figures potentially reaching ₹300 crore to ₹400 crore when including group policies.

Currently, the motor segment accounts for over 90 percent of the company's business. According to MD and CEO Anil Aggarwal, the company maintains a target of generating roughly 15 percent of its overall business from non-motor segments by the financial year 2029-30.

Detailing the company's approach to the non-motor segment, Aggarwal noted that the firm temporarily withdrew from the fire insurance market during the first half of the fiscal year due to a 30 percent industry-wide de-growth in fire premiums, returning to growth in October as rates improved.

For the first half of the fiscal year, Shriram General Insurance recorded a 21 percent year-on-year growth in gross direct premium, reaching ₹2,470.41 crore compared to ₹2,045.46 crore in the corresponding period of the previous fiscal. Within this, the motor segment grew by 21 percent, while the non-motor segment saw a 14 percent growth.

The company's net profit for the period rose by 7.28 percent year-on-year to ₹289.04 crore, up from ₹269.42 crore a year earlier. During the same period, Shriram General Insurance onboarded 9,802 new financial advisors, marking a 3 percent increase and bringing its total advisor strength to 1,13,717. The insurer also expanded its physical footprint, increasing its branch network to 291 branches from 281.

Aggarwal highlighted that the agency channel continues to drive the majority of the company's growth, while the bancassurance channel remains relatively small due to a lack of tie-ups with major public sector banks. With new manpower onboarded for the health segment, the company expects to meet its long-term non-motor diversification targets.

"Diversification is a critical growth lever for established financial institutions looking to balance risk across portfolios. Shriram General Insurance's methodical entry into the health segment, alongside its strong core performance in the motor sector, demonstrates a balanced approach to scaling operations. Expanding distribution channels through agency networks while carefully managing exposure in volatile segments like fire insurance highlights disciplined risk management and steady long-term planning." — Dr. Shishir Gupta, Founder & CEO, StartupLanes