Decline in fire insurance premium moderates to 14% in September 2026

Commercial fire insurance premiums fell 13.6 per cent in September, compared with a 24.8 per cent decline in August, as catastrophe losses prompted insurers to ease discounting

The decline in commercial fire insurance premiums moderated to 13.6 per cent year-on-year (Y-o-Y) in September 2026 compared to 24.8 per cent Y-o-Y degrowth in August, indicating a possible easing of discounting by general insurers amid mounting catastrophe losses, sector analysts said.

 “The fall has now narrowed for two months running, and it has done so against a rising base. This suggests the heavy discounting of the past year is starting to ease. The monsoon brought large catastrophe losses across several states, and claims of that kind usually feed into renewal pricing,” analysts at CareEdge said in a report.

 The insurance industry incurred losses estimated at nearly ₹5,000 crore due to floods in Gujarat, affecting the fire and property insurance segments. Following these losses, premiums for property and fire insurance are estimated to have hardened by 25-30 per cent, industry experts said.

 

 Fire insurance premiums fell to ₹1,494.6 crore in September, according to data from the General Insurance Council. During the first half of FY27 (April–September), premiums declined 26.6 per cent Y-o-Y to ₹12,768.73 crore.

 The segment’s share in total premiums also fell to 7.1 per cent from 10.5 per cent in the corresponding period of FY26. In FY26, fire insurance premiums had grown 13.4 per cent to ₹27,523.79 crore.

 Fire insurance premiums had come under pressure due to aggressive discounting, supported by increased reinsurance capacity following the entry of reinsurers in GIFT City and a period of relatively low losses in the segment.

 The Insurance Regulatory and Development Authority of India (Irdai) had also cautioned general insurers against aggressive pricing in the fire insurance segment after receiving complaints of discounts of up to 99 per cent on large industrial risks. The regulator had warned that such pricing could undermine insurers’ financial health and underwriting discipline.