ICICI Lombard General Insurance has addressed concerns regarding its 'Material Change' clause in health insurance policies, assuring policyholders that developing new illnesses after purchasing a policy will not lead to higher premiums or changes in coverage.

Key Points of Clarification

• The 'Material Change' clause applies to health insurance policies, including plans like Elevate and Health AdvantEdge.
• The clause is designed to recognize positive health changes that could potentially lead to lower premiums or wellness benefits.
• ICICI Lombard follows IRDAI rules and industry standards in implementing this clause.

Impact on Policyholders

Disclosure Requirements

• Policyholders are required to disclose new illnesses at the time of renewal.
• Such disclosures will not affect premiums or coverage unless changes are requested by the policyholder.

Exceptions

Changes in premiums or coverage may occur only when policyholders request:

1. An increase in sum insured
2. Addition of new members to the policy
3. Inclusion of additional covers

ICICI Lombard's clarification comes in response to concerns raised on social media and by consumer groups regarding the interpretation of the 'Material Change' clause. The company emphasizes that this clause is intended to work in conjunction with renewal terms, maintaining consistency and fairness in policy management.

This clarification provides reassurance to existing and potential policyholders of ICICI Lombard, addressing fears about potential negative impacts on their health insurance coverage due to health changes over time.

ICICI Lombard General Insurance , one of India's leading private sector general insurance companies, has reported a robust 22.9% growth in Profit After Tax (PAT) for the first half of FY2026, despite facing headwinds in premium growth. The company's financial results for H1 FY2026 showcase its resilience and strategic focus on profitability in a competitive market environment.

Financial Highlights

• Profit After Tax (PAT) increased by 22.9% to ₹15.67 billion in H1 FY2026, up from ₹12.74 billion in H1 FY2025.
• Gross Direct Premium Income (GDPI) saw a marginal decline of 0.5% to ₹143.31 billion, against the industry growth of 7.3%.
• Excluding Crop and Mass Health segments, the company achieved a 3.5% growth compared to the industry's 10.5%.
• Combined ratio deteriorated slightly to 104.0% from 103.2%, primarily due to catastrophic events including floods.
• Investment income rose to ₹25.38 billion from ₹22.52 billion in the previous year.
• The Board declared an interim dividend of ₹6.50 per share, up from ₹5.50 in the previous year.

Segment Performance

The company's Retail Health business demonstrated particularly strong growth, improving its market share from 3.2% to 3.7%.

Market Position and Strategy

Despite the overall GDPI decline, ICICI Lombard maintained its leadership in key segments:

• Retained the top position in Engineering, Liability, and Marine Cargo lines of business.
• Continued leadership in the Motor segment with a 10.4% market share in H1 FY2026.

The company's management expressed optimism about recent GST reforms, particularly the exemption on individual health insurance premiums and reduced GST rates in the automobile sector, which are expected to benefit the insurance industry.

Future Outlook

ICICI Lombard remains focused on driving profitable growth and sustainable value creation. The company is well-positioned to capitalize on the expected increase in demand for health and motor insurance following the recent GST reforms.

The management anticipates that the GST changes may make healthcare protection more affordable for households and potentially increase vehicle ownership, both of which could drive growth in their respective insurance segments.

Investor and Analyst Perspective

During the earnings conference call, the company's leadership, including MD & CEO Sanjeev Mantri and CFO Gopal Balachandran, highlighted the positive impact of recent regulatory actions and reforms. They expressed confidence in the company's ability to capitalize on growth opportunities across various business streams.

The management reaffirmed their commitment to maintaining a Return on Average Equity (ROAE) in the range of 18-20%. For H1 FY2026, the ROAE stood at 20.8%, compared to 20.3% in H1 FY2025.

As ICICI Lombard navigates through the evolving market dynamics, its focus on prudent risk selection, operational efficiency, and strategic growth initiatives positions it well to leverage the anticipated upturn in the insurance sector.