Indian property insurers lift premiums 25-30% after Gujarat flood losses

Insurers in India are increasing property insurance premiums by roughly 25-30% after the Gujarat floods caused estimated losses of ₹5,000 crore. Gurdeep Singh Batra of Bajaj General Insurance said the rise is driven chiefly by a reduction in discount levels rather than higher base NATCAT rates. The Insurance Regulatory and Development Authority of India has cautioned firms about overly aggressive pricing following reports of discounts as deep as 99% on large industrial policies.

While abundant reinsurance capacity and competition had previously kept rates low, a series of floods in Gujarat, Assam and Odisha, plus several industrial accidents, are forcing a shift toward higher pricing. Some insurers have introduced minimum rates for fire insurance’s natural-catastrophe component to curb losses. Hanmant Dudle of Lockton India noted the market is moving away from deep discounting toward more disciplined, sustainable pricing, especially for large hydro and infrastructure risks exposed to natural catastrophes.