Non-life insurance premiums grew by 13.7% year-on-year in December 2025, extending the double-digit growth trend for the second consecutive month, albeit at a more moderate pace compared to November, with premium collections reaching Rs 28,446.8 crore. This continued acceleration in growth could be attributed to an increase in the health, motor, and fire segments, according to CareEdge Ratings study. Further, the December 2025 growth appears elevated on a y-o-y basis due to a regulatory base effect, as premium growth in December 2024 was impacted by the implementation of the 1/n rule. Under the 1/n system, commissions for long-term policies are now spread over the policy term instead of being paid upfront.
December 2025 witnessed a broad-based recovery in premium growth across public and private general insurers, supported by a favourable base. Public sector insurers’ growth accelerated to 14.7% from 6.1% a year ago. In contrast, private insurers saw a sharp turnaround, recording a significant 60.3% growth, attributed to strong traction in the health insurance segment, pricing discipline, and quarter-end-driven demand. Private non-life insurers, including standalone health insurers (SAHIs), continued to dominate the market, holding a 78% share in December 2025, up from 72% in December 2024 and 73% in December 2023.
Specialised insurers recorded a significant contraction in December 2025, with premiums declining 66.4% y-o-y as compared to the 8.1% growth seen in the year-ago period. The steep decline largely reflects the seasonal nature of crop insurance, with limited premium recognition outside peak Kharif and Rabi execution windows, and limited carryover of deferred premium recognition from preceding months. Meanwhile, the segment recorded cumulative growth of 10.1% up to December 2025.
SAHIs continued their strong double-digit growth in premiums, with premiums rising above 30% for the second consecutive month. SAHIs grew by 38.8% y-o-y in December 2025, significantly higher than the 5.2% growth recorded in the same month last year. While growth was supported by strong demand in the retail health segment, improved affordability following the GST exemption, and customers opting for higher sum insureds, the sharp year-on-year expansion was also accentuated by a base effect, as premium growth in December 2024 was impacted by regulatory changes, including the implementation of the 1/n rule. Additionally, SAHIs maintained their upward momentum, with their market share in health premiums rising to 30% from 28% y-o-y, mainly at the expense of private general insurers.
Health insurance remains the largest segment within the non-life insurance industry, posting a strong 33.2% growth in December 2025. The increase was largely attributable to stronger performance in the retail segment, where the effect of the GST rate cut on individual health policies was clearly visible.
Additionally, overall growth was driven by renewals, leading to stronger growth across the group and the retail segment. Within this segment, continued growth in SAHIs has made them consistently outperform, underscoring their growing influence in the market.
The retail health segment continued its growth trajectory in December 2025, driven by GST rate cuts, policy renewals and improved penetration amid rising medical inflation. Additionally, growth increased to 34% from 0.7% in the same period last year, driven by the base effect.
Group health insurance growth grew by 16.5% in YTDFY26, up from the 14.3% seen in YTDFY25. This acceleration is partly linked to the renewal- led upgrades to higher sums insured, amid pricing discipline.
SAHIs remain concentrated in the retail segment, whereas general insurers continue to dominate the group business. With new SAHIs set to enter the market, competitive intensity is expected to rise over the medium term.
The Others’ segment reported a recovery in y-o-y premium growth in December 2025. This increase was mainly due to a seasonal surge in overseas medical demand, overseas leisure travel, and premium bookings under government schemes, which have provided some support.
The recent reduction in GST on health insurance has lowered the overall cost for policyholders, making products more affordable and supporting stronger demand. Insurers are likely experiencing higher new-business premiums and greater penetration, particularly in retail segments. The reduced tax burden also enhances customer retention, as renewal premiums have become relatively more affordable, contributing to sustained growth in the health insurance segment.
The growth of the non-life insurance industry, excluding health, increased and stood at 2.5% in December 2025. Furthermore, a sizable proportion of this
growth was attributed to the fire and other segments (primarily personal accident premiums, which grew by nearly 150% to Rs 1,300 crore).
In YTDFY26, Motor OD premiums grew by 7.7%, slightly lower than the 9.1% recorded in YTDFY25, reflecting the impact of muted PV sales in the first half before GST reductions. In contrast, Motor TP premiums rose by 9.7%, slightly higher than the 7.9% growth in the previous year. The Ministry of Road Transport and Highways (MoRTH) is considering an upward revision to motor TP premiums, following IRDAI’s recommendation, which could further support segment growth. Furthermore, the GST reduction on vehicles from September 22, 2025, has bolstered festive-season demand. Three-wheeler sales jumped 36.0% y-o-y to 1.27 lakh units in December 2025 (from 0.93 lakh last year), while commercial vehicle sales rose 27.0% y-o-y to 1.16 lakh units. Passenger vehicles grew by 25.2% y-o-y to 4.67 lakh units. This strong momentum is likely to support Motor OD premium growth in the near- to medium-term.
The fire insurance segment continued to grow, recovering significantly by 20.1% in YTDFY26, a rise from an 6.3% decline seen in the same period last year. Meanwhile, the engineering segment grew by 18.3%, down from 5.9% in YTDFY25. However, crop insurance decreased by 67.9%, declining more from 2.2% in the previous year, YTDFY25. This decline is attributed to reduced state-level participation, limited premium recognition outside peak kharif and rabi execution windows, and limited carryover of deferred premium recognition from preceding months, all of which impact premium inflows.