India’s non-life insurance sector saw a slowdown in premium growth last August, mainly due to weaker crop insurance sales and a sluggish passenger vehicle market, according to a new report from Care Edge Ratings.
The total premium collections for non-life insurance reached Rs 24,953 crore by August 2025, marking just a 1.6% year-on-year increase. This growth pales in comparison to the 4.2% jump seen in August 2024, showing clear signs of a broader slowdown in the non-life insurance industry.
Experts point to several reasons behind this dip. The shift to the 1/n rule—where insurers spread premium income across the policy period instead of collecting it all upfront—played a big role. Delays from expected Goods and Services Tax (GST) cuts also contributed, along with poor performance in crop insurance and a quiet passenger vehicle segment.
On a brighter note, strong performances in health insurance, fire, and engineering categories helped cushion the blow. Public sector general insurers kept up their impressive streak, growing faster for the 11th straight month in August 2025. This boost came from renewals in fire, engineering, health, and motor third-party insurance.
Even so, the 1/n rule continues to dampen overall industry growth numbers. Private non-life insurers, including standalone health insurers (SAHIs), held a solid 70% market share in both August 2024 and 2025, up from 68% the year before. Year-on-year, their share stood at 64.8% in August 2025, down slightly from 66.4% in 2024. Meanwhile, public sector insurers gained ground, reaching 35.2% from 33.6% a year earlier.
Health insurance led the pack as the biggest segment in non-life insurance, with a healthy 14.3% growth in August. This came thanks to better demand in related areas too. But the industry’s overall pace has cooled off, hit by the 1/n rule and rising premiums that make policies less affordable. In health insurance specifically, SAHIs kept shining brighter than the rest.
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