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The general insurance (GI) industry posted modest ~7% yoy GDPI growth in 2QFY27, led by i) strong ~32% growth in the retail health segment, driven by continued growth momentum supported by GST tailwinds; ii) healthy ~16% growth in the Motor OD segment, led by healthy new vehicle sales; iii) modest ~10% growth in the Motor TP segment, aided by healthy new vehicle sales; iv) offset by a sharp ~24% yoy decline in the Fire segment and ~27% decline in Crop GDPI in 2QFY27. Among private listed players, ICICIGI reported muted ~3% yoy growth, while GODIGIT posted ~1% decline in 2QFY27. The slowdown in growth for private listed multiline general insurers was driven by a focus on profitability amid a challenging environment. STARHEAL clocked strong ~19% GDPI growth and maintained its market leadership in the Retail Health segment. Going forward, we expect the industry to report modest growth in FY27, owing to i) continued pricing aggression and heightened competitive intensity in the Motor OD segment; ii) healthy growth momentum in the retail health segment, led by better affordability; and iii) easing of pricing aggression in the Fire segment from 2H onward. Against such a backdrop, we expect large private general insurers such as ICICIGI, BAGIC, and GODIGIT to focus on profitability. Further, the proposed distribution reforms are likely to drive better discipline in the GI market; however, we remain watchful of the final paper to be published by the regulator.

Motor and Health segments drive GDPI growth

The GI industry posted ~7% yoy GDPI growth in 2QFY27, led by strong ~32% growth in the Retail Health segment mainly due to continued momentum aided by better affordability and GST tailwinds. The Motor OD segment grew ~16% yoy, aided by healthy new vehicle sales, while the Motor TP segment reported ~10% yoy growth. The Group Health segment saw ~14% yoy growth in 2Q. The Fire segment saw a sharp ~24% yoy decline in 2Q, owing to increased pricing aggression led by higher discounting, while the Crop segment also witnessed a significant ~27% decline in 2Q. Overall, while the Motor and Health segments delivered healthy growth, the industry saw ~7% GDPI growth, offset by a decline in the Crop and Fire segments.

Motor segment posts healthy growth; private listed players see divergent trends

The Motor OD segment delivered ~16% yoy GDPI growth in 1HFY27, led by healthy growth in new vehicle sales, supported by a reduction in GST rates. Growth in the Motor OD segment was primarily driven by private multiline players clocking ~17% yoy growth, while PSU players posted ~14% yoy growth. ICICIGI posted ~11% growth in 1HFY27, while GODIGIT registered a ~5% decline. While ICICIGI maintained its market leadership, it lost ~50bps market share in 1HFY27, while GODIGIT lost ~110bps market share yoy. The Motor TP segment posted ~11% growth in 1HFY27 driven by ~13% growth for private players, while PSUs delivered modest ~7% growth. ICICIGI clocked healthy ~15% yoy growth in the Motor TP segment during 1HFY27, while GODIGIT reported largely flat growth in 1HFY27.

Industry witnesses strong growth in Retail Health supported by GST tailwinds

Retail Health remained the fastest-growing segment, clocking strong ~31% growth in 1HFY27 led by better affordability supported by the GST rate cut. Private multiline players outperformed SAHIs, clocking strong ~40% yoy growth in 1HFY27 vs ~36% for SAHIs, while PSU players reported modest ~6% yoy growth. STARHEAL reported strong ~22% GDPI growth in 1HFY27, while Aditya Birla Health remained the fastest-growing player clocking ~70% yoy growth. ICICIGI reported robust 56% growth, while Niva Bupa delivered strong ~47% growth in retail health during 1HFY27. The Group Health (including Government Health) segment saw ~14% yoy growth during 1HFY27, led by private multiline players clocking strong ~24% growth, while PSU players posted muted ~5% yoy growth. SAHIs clocked healthy ~17% yoy growth.

Crop and Commercial Lines segments witness a decline

The Commercial Lines segment’s GDPI declined ~5% yoy in 1HFY27, driven by ~21% decline in the Fire and Engineering segment. The sharp decline in the Fire segment was driven by increased discounting and pricing aggression, led by higher reinsurance capacity in the market. The Crop segment saw sharp ~31% decline in GDPI during 1HFY27, primarily driven by a decline for PSU Specialized players, while PSU multiline players gained significantly

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