IGI Logo

Synopsis

Non-life insurance premiums grew 10.0% y-o-y in August 2026 to Rs 27,455 crore, taking April–August FY27 growth to 9.6% from 6.0% a year earlier, as the drag from fire and crop shrank. Crop premium tripled from July to Rs 3,274 crore, as states extended the Kharif enrolment deadline beyond 31 July and shifted business into August. Excluding fire and crop, growth eased to 14.3% from nearly 17% in July, as motor slowed in line with vehicle sales while government health scheme premium was booked unevenly. Retail lines continued to drive industry growth, with health up 32.5% for a fifth straight month above 30% and motor recording its fifth straight month of doubledigit growth; together, health and motor accounted for the entire premium increase. Commercial lines remained weak, although fire’s decline eased for the first time this year. Private insurers and standalone health insurers wrote 73.3% of August premium, the highest share this year, and portfolio mix drove growth: insurers weighted toward retail health and motor grew at double digits, while those with large fire and crop books lagged.

Overall Growth Improves to 10% as the Fire and Crop Drag Halve

Non-life insurance premiums stood at Rs 27,455 crore in August 2026, up 10.0% y-o-y compared with 1.6% in August 2025 and 5.7% in July 2026. Health and motor generated almost all of the month's premium growth, as they have through FY27. What changed between July and August was the drag from fire and crop. In July, the two segments together wrote Rs 2,387 crore less than a year earlier, which kept industry growth lower at 5.7%. In August, that shortfall narrowed to Rs 364 crore, as crop premium returned to roughly last year's level while fire continued to fall. The headline improved because the drag halved, not because health and motor grew faster. Crop accounted for 11.9% of August premium but only 3.0% year-to-date.

Figure 1: Monthly Premium and Growth (Rs crore, %)

Excluding fire and crop gives a cleaner reading of the rest of the industry, whereby growth eased to 14.3% in August from 16.8% in July. Premium increased by Rs 2,506 crore this month. Almost all of this growth came from just two areas: health insurance added Rs 1,651 crore and motor insurance added Rs 856 crore. Fire insurance, however, fell by Rs 400 crore compared with last year. This heavy reliance on health is also clear over the April– August period: premium excluding health grew by just 2.0%, while the industry excluding fire and crop insurance grew by 17.5%

Figure 2: Reported Growth versus Growth Excluding Fire and Crop (%)

Private Insurers and SAHIs Take 73% of August Premium Private insurers and standalone health insurers (SAHIs) wrote 73.3% of August premium, up from 69.5% a year earlier and the highest this year, taking their combined share for April–August FY27 to 67.9% from 64.8%. Excluding crop, their share rose to 72.5% from 69.7%, a gain of 2.8 percentage points against the 3.8 points reported.

Public sector general insurers grew 0.6% in August after 6.6% in July. The slowdown is mostly a base effect, as the four public sector general insurers grew close to 15% in August 2025. Performance among them was mixed, with two of the four insurers growing between 4% and 7% and the other two declining by 5% to 7%. Their retail health premium grew 6.0% year-to-date, compared with 31.8% for the industry.

Figure 3: Premium Growth by Insurer Group and Share of Monthly Premium

Premiums of Specialised PSU insurers declined by 26.8% in August and 52.7% year-to-date. Almost all of this came from the group's crop insurer, whose premium fell 32.6% during the month and 66.3% year-to-date, while the export credit insurer grew 12.2% year-to-date. The broader pattern remains consistent where portfolio mix rather than ownership is driving performance: insurers focused on retail health and motor are growing at double-digit rates, while those with greater exposure to fire and crop are not.

Retail Health grew over 30% for the Fifth Month; Slowdown Is in Government Schemes Health accounted for 39.5% of August premium and 44.0% of premium for April–August FY27, up from 39.9% a year earlier. Health premiums grew 18.0% year-on-year in August to Rs 10,834 crore, compared with 26.0% in

July and 20.9% year-to-date. The reported deceleration does not indicate weaker underlying growth. Health premium includes an "others" category covering government schemes and overseas medical cover, both of which are booked in bulk rather than evenly through the year. That category swung from 46% growth in July to a 36% decline in August, and it accounts for the entire difference between the two headline figures. Excluding it, health premium grew 24.2% in August, up from 23.7% in July. Government scheme premium remains up 12.7% year-todate.

Above views are of the author and not of the website kindly read disclaimer