The improvement took cumulative premium growth for April-August FY27 to 9.6%, up from 6.0% during the corresponding period a year earlier.
Crop insurance premium almost tripled from July to ₹3,274 crore in August after states extended the Kharif enrolment deadline beyond July 31, shifting a substantial portion of business into August.
Health and motor remain growth engines
Health and motor insurance continued to account for virtually the entire increase in industry premium during August.
Health insurance premium grew 32.5% year-on-year, marking the fifth consecutive month of growth above 30%. Motor insurance also recorded its fifth straight month of double-digit growth.
Excluding fire and crop insurance, however, industry growth moderated to 14.3% in August from 16.8% in July. Premium increased by ₹2,506 crore during the month, with health contributing ₹1,651 crore and motor ₹856 crore.
Fire insurance premium declined by ₹400 crore year-on-year.
Over April-August, premium excluding health grew only 2.0%, while the industry excluding fire and crop insurance expanded 17.5%, highlighting the dominant contribution of health insurance to overall growth.
Private insurers gain share
Private insurers and standalone health insurers (SAHIs) accounted for 73.3% of August’s non-life insurance premium, up from 69.5% a year earlier and the highest share recorded this year.
Their combined share for April-August FY27 stood at 67.9%, compared with 64.8% a year earlier. Excluding crop insurance, their August share was 72.5%, against 69.7% a year earlier.
Public sector general insurers recorded 0.6% growth in August, slowing from 6.6% in July. CareEdge attributed part of the slowdown to a high base, with the four public sector general insurers having grown nearly 15% in August 2025.
Performance among the four insurers remained mixed, with two reporting growth of 4%-7% and the other two declining 5%-7%. Their retail health premium grew 6.0% year-to-date, compared with 31.8% for the industry.
Crop exposure weighs on specialised PSUs
Premiums of specialised public sector insurers declined 26.8% in August and 52.7% year-to-date. Almost the entire decline was attributable to the group’s crop insurer, whose premium fell 32.6% during August and 66.3% year-to-date.
The export credit insurer, however, recorded 12.2% growth year-to-date.
CareEdge said portfolio mix, rather than ownership, continues to explain the divergence in insurer performance. Insurers with greater exposure to retail health and motor are recording double-digit growth, while those with larger fire and crop portfolios are lagging.
Underlying growth moderates
CareEdge Ratings Director Priyesh Ruparelia said August’s 10.0% industry growth overstates the improvement in underlying momentum because crop premium shifted from July to August following the extension of the Kharif enrolment deadline.
Excluding fire and crop, growth moderated to 14.3%, although CareEdge said this does not indicate weakening retail demand. The moderation reflected slower vehicle registrations and uneven booking of government health scheme premiums.
Health remains the principal growth driver, with CareEdge noting improving renewal rates, a falling claims ratio and increased volumes from customers who are new to insurance.
The ratings agency expects reported retail health growth to moderate from the second half of September as the GST-related base effect becomes comparable.