India’s non-life insurance industry reported a moderation in premium growth in February 2026, even as strong traction in the health segment and other lines continued to support overall expansion.
Gross premiums for the sector stood at Rs 23,853.8 crore in February 2026, registering a year-on-year (y-o-y) growth of 9.7%, lower than the 14.9% growth recorded in January, according to a report by CareEdge Ratings. The report noted that the growth trend should be viewed against a favourable base, as February 2025 numbers were impacted by the implementation of the 1/n accounting rule.
Private Insurers Outpace Public Sector Peers
The report highlighted a broad-based uptick across both public and private insurers during the month. Public sector insurers posted a modest 4.0% y-o-y growth, marking a recovery from last year’s contraction. In contrast, private insurers continued to outperform, clocking a robust 16.0% growth, driven by sustained traction in both retail and commercial segments.
Private non-life insurers, including standalone health insurers (SAHIs), further consolidated their dominance, increasing their market share to 78.6% through February 2026 from 77.3% a year earlier.
Crop Insurance Weighs on Specialised Insurers
Specialised insurers witnessed a sharp contraction of 78.8% y-o-y in February, reversing the strong rebound seen in January. The decline was largely attributed to seasonality in crop insurance premium recognition, with January typically capturing peak Rabi-related bookings and February witnessing a tapering of flows. Lower incremental enrolments also weighed on premium collections in this segment.
Health Insurance Emerges As Key Growth Driver
Health insurance remained the largest and fastest-growing segment within the non-life space, registering a strong 27.3% growth in February 2026. The expansion was supported by improved performance in retail and “other” segments, along with increased affordability following GST rate cuts on individual health policies.
Standalone health insurers (SAHIs) continued to deliver strong double-digit growth, with premiums rising 29.8% y-o-y, nearly four times the growth seen in the same period last year. The surge was driven by robust retail demand, customers opting for higher sum insured, and the favourable base effect from regulatory changes last year.
SAHIs also increased their share in the health segment to 31% from 30% a year ago, underscoring their growing influence.
Retail Health Segment Gains Traction
The retail health segment maintained its upward trajectory, supported by GST reductions, steady policy renewals, and improved penetration amid rising medical inflation. Growth in this segment accelerated significantly, aided by a strong base effect.
Meanwhile, group health insurance recorded a growth of 12.7% in YTDFY26, compared with 11.4% in the same period last year, reflecting a recovery in policy renewals.
Competitive Intensity To Rise
The report said that SAHIs remain heavily concentrated in the retail segment, while general insurers continue to dominate the group business. With new standalone health insurers expected to enter the market, competitive intensity is likely to increase over the medium term.
Overall, despite a moderation in headline growth, the non-life insurance sector continues to exhibit resilience, led by structural tailwinds in health insurance and steady recovery across segments.