India’s non-life insurance industry reported gross direct premiums of ₹24,195 crore in May 2026, registering a year-on-year (y-o-y) growth of 8.7%, according to a CareEdge Ratings report. The growth was driven primarily by strong momentum in health insurance, particularly the retail health segment, along with sustained expansion in motor insurance.
Private insurers gain market share
The industry’s premium growth improved from 6.5% in May 2025, supported largely by private insurers and standalone health insurers (SAHIs). While public sector general insurers reported a 3.8% decline in premiums, private general insurers recorded healthy growth of 11.8% owing to stronger retail franchises, wider distribution networks and better customer acquisition.
As a result, the combined market share of private insurers and SAHIs increased to 70.9% in May 2026 from 66.6% a year earlier, highlighting the growing importance of retail-focused insurance business.
Health insurance remains key growth driver
Health insurance continued to lead growth in the non-life insurance sector, with premiums rising 13.7% y-o-y in May 2026, higher than the 9.3% growth recorded in the corresponding period last year.
The segment benefited from sustained demand for health coverage, rising healthcare costs and increasing awareness of financial protection against medical emergencies.
Retail health segment shines
The retail health segment emerged as the strongest-performing category, registering robust growth of 30.5% y-o-y in May 2026 compared with 8.1% growth a year earlier.
Growth was driven by increasing adoption of individual health insurance policies, rising medical inflation, greater demand for comprehensive coverage and continued expansion of distribution channels. A favourable base effect also contributed to the sharp increase.
SAHIs continued to strengthen their leadership position in the retail health segment, reinforcing their dominance in specialised health insurance offerings.
SAHIs continue strong momentum
SAHIs remained the fastest-growing segment within the industry, recording premium growth of 31.7% y-o-y in May 2026. On a year-to-date (YTD) basis, they posted growth of 34%, significantly higher than the overall industry’s growth of 8.5%.
The report attributed the strong performance to rising healthcare costs, increasing awareness of health insurance and growing consumer preference for specialised health insurers. Their share in health insurance premiums rose to 37.1% in May 2026 from 32% a year ago.
Group health growth moderates
The group health insurance segment registered growth of 6.9% y-o-y in May 2026, lower than the 11% growth recorded in the corresponding period last year.
Despite the moderation, demand from corporates and employer-sponsored health insurance programmes continued to support the segment. General insurers retained a dominant position due to their long-standing corporate relationships and broader product portfolios.
Other segments face pressure
Growth remained uneven across insurance categories. The report highlighted significant contractions in fire and crop insurance, which partially offset gains in health and motor insurance.
The ‘Others’ health segment declined sharply by 51.1% y-o-y during May 2026. The decline was attributed to lower premium accruals from institutional and niche business segments, absence of large policy issuances and renewals, and geopolitical uncertainties in West Asia that may have affected overseas travel demand.
Specialised PSU insurers see steep decline
Specialised public sector insurers witnessed a sharp 94.9% decline in premiums during May 2026. According to the report, the volatility stems from the lumpy nature of business in this segment and dependence on a limited number of large-value policies.
Consequently, premiums underwritten by specialised insurers declined 42.2% on a YTD basis.
CareEdge Ratings’ view
Priyesh Ruparelia Director CareEdge Ratings said, “The non-life insurance industry reported gross direct premiums of ₹24,195 crore in May 2026, registering a healthy growth of 8.7% y-o-y, supported primarily by strong momentum in health insurance and sustained growth in the motor segment. The continued outperformance of SAHIs and robust expansion in retail health premiums reflect the increasing preference for specialised and customer-centric insurance offerings.”