India’s non-life insurance industry recorded a 6.1% year-on-year growth in gross premiums to ₹32,951 crore in September 2026, slowing from 12.7% in the year-ago month as a sharp decline in crop insurance premiums offset strong growth in health and motor insurance.
Premium growth was also lower than the 10% recorded in August 2026. However, excluding fire and crop insurance, industry growth accelerated to 17.7% in September from 14.3% in August, indicating stronger underlying momentum, according to CareEdge Ratings.
Health and motor insurance together added ₹3,224 crore in premiums during September compared with a year earlier. This more than offset a combined decline of ₹2,103 crore in crop and fire insurance premiums, leaving the industry’s total premium income ₹1,899 crore higher year-on-year.
Crop insurance premiums fell by ₹1,867 crore, while fire insurance premiums declined by ₹236 crore.
Crop insurance decline weighs on growth
The decline in crop insurance premiums reflected both a high base and lower premium rates. September 2025 had recorded crop premiums of ₹6,751 crore, compared with ₹5,619 crore in September 2024.
According to CareEdge Ratings, around three-fifths of the latest decline was attributable to this high base, while the remainder took crop premiums below the September 2024 level because of lower premium rates rather than a reduction in the area covered.
September is the largest month for crop insurance premiums, accounting for 14.8% of the month’s total non-life premiums, compared with 5.2% during the first half of FY27. This seasonal concentration amplified the drag on reported industry growth.
Private insurers strengthen market share
Private insurers and standalone health insurers (SAHIs) together accounted for 65.8% of September premiums, up from 59.6% in September 2025. Their combined market share stood at 67.5% in the first half of FY27, compared with 63.8% a year earlier.
Excluding crop insurance, their combined share rose to 67.5% from 65% in the first half of FY26, representing a gain of 250 basis points.
The headline market-share increase is partly influenced by the decline in crop insurance, a segment historically dominated by specialised public sector insurers.
Public sector general insurers recorded 10% premium growth in September, recovering from 0.6% in August. However, their premiums grew 4.8% in the first half of FY27, below the industry’s 8.9% growth.
Their health insurance premiums increased just 5% during the period, compared with 20.8% for the industry. Excluding fire insurance, public sector general insurers recorded 9.1% growth, against 13.1% for the industry.
Specialised public sector insurers saw premiums decline 49.9% in September and 51.1% during the first half of FY27. Crop insurance, which accounted for about 78% of their first-half premiums, was responsible for the decline, while credit guarantee premiums grew 9.9%.
Health insurance premiums rise 20.2%
Health insurance continued to be the industry’s largest growth driver, with premiums increasing 20.2% year-on-year to ₹12,847 crore in September, accelerating from 18% growth in August.
Health insurance accounted for 39% of total non-life premiums during the month and 43.1% during the first half of FY27, compared with 38.9% in the corresponding period a year earlier.
Retail health premiums grew 32.8%, while group health premiums increased 16.7%. Both segments recorded faster growth than in August.
Motor insurance maintains double-digit growth
Motor insurance premiums rose 12.9% year-on-year in September, compared with 10.4% in August, marking the sixth consecutive month of double-digit growth.
Own-damage (OD) premiums increased 17.7%, outpacing the 9.8% growth in third-party (TP) premiums. Consequently, OD insurance’s share of total motor premiums rose to 41.3% in September from 39.6% a year earlier.
The stronger performance of health and motor insurance highlights the importance of portfolio composition in determining growth across insurers.
GST changes may moderate retail health growth
CareEdge Ratings Director Priyesh Ruparelia said reported industry growth of 6.1% understated the sector’s underlying performance because crop premiums declined from a high base and at lower rates.
He noted that growth excluding fire and crop insurance reached 17.7% in September, the highest since June, supported by faster growth in health and motor insurance.
Ruparelia also said health insurance growth was improving in quality, with the segment adding policyholders and selling higher coverage rather than relying solely on price increases.
However, he cautioned that the change in the GST base from October 2026 was likely to moderate reported retail health insurance growth in the third quarter.