Overall Sector Expansion
The non-life insurance sector witnessed a notable increase in premiums collected during December, rising by 13.7% year-on-year to reach Rs 28,446.8 crore.
This positive trend was evident across several key segments, including health, motor, and fire insurance. The robust performance indicates a recovering market, influenced by factors such as a favorable base effect compared to the previous year. Specifically, private general insurers showed an impressive turnaround, recording a substantial 60.3% growth. This growth can be attributed to heightened demand in the health insurance segment, strategic pricing strategies, and quarter-end-driven consumer activity. Private non-life insurers, including standalone health insurers, continued to dominate the market, holding a considerable 78% share in December 2025, which increased from 72% in December 2024 and 73% in December 2023. These figures highlight the dynamic nature of the insurance landscape and the critical role played by private sector players in driving growth.
Health Insurance Dominance
Health insurance remained the largest segment within the non-life insurance sector. Premiums in this category grew by 33% to reach Rs 12,127.1 crore, significantly influencing the overall sector's positive performance. This growth was driven by a robust performance within the retail segment, where the impact of the Goods and Services Tax (GST) rate cut on individual health policies became evident. Moreover, policy renewals also played a crucial role in maintaining this momentum. These factors collectively underscore the rising demand for health insurance products and the strategic adjustments made within the sector to meet consumer needs. The dominance of health insurance highlights the growing awareness and importance of health coverage among the population, further positioning it as a key driver of growth for the insurance industry.
Motor Insurance Performance
Motor insurance, the second-highest contributor in the non-life insurance sector, experienced a positive surge, with premiums increasing by 12% in December to Rs 9,735.7 crore. This growth indicates a continued recovery and strong market activity within the motor insurance segment. The steady rise in premiums reflects sustained consumer demand and increased vehicle ownership or usage. Motor insurance's performance is reflective of broader economic indicators, demonstrating its resilience and significance within the non-life insurance market. Despite the challenges, the consistent upward trajectory suggests that motor insurance continues to be a crucial component in India's insurance sector.
Crop Insurance Decline
In stark contrast to the positive trends in other segments, crop insurance witnessed a significant downturn, with premiums plummeting by 68% to Rs 947 crore. This decline was primarily attributed to reduced state-level participation, limitations in premium recognition outside the peak seasons of kharif and rabi, and a limited carryover of deferred premium recognition from the preceding months. These factors collectively indicate the challenges faced within the crop insurance segment, impacted by various issues from governmental participation to seasonal timing. The decrease also underscores the need for strategic interventions and policy adjustments to support the long-term sustainability of crop insurance. This segment’s fluctuation affects the overall balance of the non-life insurance sector.
Private vs. Public Insurers
A significant trend observed in December was the contrasting performance between private and public general insurers. Gross direct premiums underwritten by private general insurers surged by 60% year-on-year to Rs 13,621.4 crore. This significant growth marked a recovery from the previous year's figures. Public general insurers, on the other hand, saw a more moderate growth of 15% to reach Rs 10,126.4 crore. Specialized public sector undertaking insurers experienced a considerable drop of over 65%. Standalone health insurance companies, however, showed a notable increase of nearly 39%. These divergent trends underscore the competitive landscape and the varied strategies adopted by different types of insurers in the market. The private sector's rapid growth suggests the effectiveness of their market approaches.
