India’s public sector general insurers are on a roll, clocking a solid 15% year-on-year growth in premium collections for the eleventh straight month in August. They raked in Rs 6,496 crore, up from Rs 5,649.5 crore in the same month last year, according to a new report from CareEdge Ratings.
This impressive surge in public sector insurance growth comes mainly from strong renewals in key areas like fire, engineering, health, and motor third-party insurance. But there’s a catch—the shift to the “1/n rule” under GST reforms has put a slight damper on the overall headline numbers.
Meanwhile, the broader non-life insurance sector in India is seeing slower days. Total premiums hit Rs 24,953 crore in August, marking just a 1.6% rise from last year—down from a healthier 4.2% growth in August 2024. Private non-life insurers, including standalone health insurers (SAHI), continue to rule the roost with a whopping 70% market share in both August 2024 and 2025, up from 68% the year before.
On an annual note, private insurers hold 64.8% of the market as of August 2025, a tad lower than 66.4% last year. Public sector players, however, gained ground, boosting their share to 35.2% from 33.6% in August 2024.
Health insurance remains the star of the non-life insurance industry in India, grabbing the top spot with 14.3% growth. Premiums jumped from Rs 8,038 crore in August 2024 to Rs 9,183.7 crore this year. The group health segment led the charge in the year-to-date FY26, fueled by policy renewals and premium increases to tackle rising medical inflation.
That said, the pace has cooled a bit—group health growth slowed to 10% from 16.7% last year, while retail health insurance dipped to 8.5% in YTD FY26, compared to 18.3% in the previous period. As the insurance market evolves, these trends highlight the push for better coverage amid economic shifts.
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