India’s non-life insurance premiums rose 10% in August, with retail health emerging as the main growth engine while fire premiums continued to decline.
India’s non-life insurance premiums reached ₹27,455 crore in August 2026, up 10% year on year, according to CareEdge Ratings. Premium growth for the first five months of FY2026-27 stood at 9.6%, compared with 6% during the same period a year earlier.
The latest figures show a clear divergence across insurance segments. Retail health continued to expand rapidly, while fire premiums fell sharply. Motor insurance also recorded double-digit growth, although slower vehicle registrations moderated the pace.
Health Insurance Leads Premium Growth
Health insurance premiums rose 18% year on year to ₹10,834 crore in August, accounting for 39.5% of total monthly non-life premiums. For April to August, health insurance represented 44% of overall non-life premiums.
Retail health remained particularly strong, growing 32.5% for the month. The segment has now recorded more than 30% growth for five consecutive months.
CareEdge said the expansion reflects higher renewals, new policyholders and increased volumes rather than price increases alone. Excluding government schemes and overseas medical cover, health insurance growth reached 24.2% in August, compared with 23.7% in July.
Standalone health insurers recorded 30.4% growth, while private multiline insurers grew 12.5%. Public-sector general insurers recorded 0.6% growth during the month.
The changing mix has increased the share of private general and standalone health insurers in the market. Together, they accounted for 73.3% of August non-life premiums, compared with 69.5% a year earlier.
Fire Insurance Premiums Continue to Fall
Fire insurance moved in the opposite direction. Premiums declined 24.8% year on year to ₹1,212 crore in August. For the first five months of FY2026-27, fire premiums fell 28.1%.
CareEdge attributed the decline across major insurers to competitive pricing rather than a fall in insured exposure. Upcoming renewal cycles could provide more clarity on whether insurance rates stabilise.
Motor insurance premiums increased 10.4%, marking the fifth consecutive month of double-digit growth. However, slower vehicle registrations reduced the pace from 14% in July.
Crop insurance premiums also jumped in August after states extended Kharif enrolment beyond July, shifting premium recognition into the month.
The sector is also entering a different comparison period for individual health insurance. The government reduced GST on individual health and life insurance policies from 18% to zero with effect from September 22, 2025. Group insurance policies continue to attract GST.
As the industry moves beyond the anniversary of that tax change, future premium data should provide a clearer picture of underlying insurance demand, particularly in retail health.
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