However, the 1/n accounting regulations weighed on the industry’s premium growth in the first half of the fiscal (H1FY26), along with decline in crop insurance.
In March, non-life insurance premium grew around 9 per cent to ₹28,921.9 crore.
In FY26, general insurance companies’ gross direct premium underwritten was up 8 per cent Y-o-Y to ₹2.79 trillion. The standalone health insurers posted 19.4 per cent Y-o-Y growth to ₹45,865.81 crore, while specialised insurance companies saw 5.14 per cent Y-o-Y growth to ₹11,676.2 crore.
In FY25, the non-life insurance industry saw a muted growth of 6.20 per cent Y-o-Y due to the change in accounting of long term policies from October 2024, with the impact continuing till October 2025. In FY24, non-life insurance premiums grew by 13 per cent Y-o-Y.
Shashi Kant Dahuja, executive director and chief underwriting officer, Shriram General Insurance said, “Growth has been anchored by strong health insurance momentum, with standalone health insurers (SAHIs) delivering robust 19 per cent growth and continuing to gain market share in the retail segment. This reflects a clear shift towards customer-centric product and solution offerings, alongside a steady recovery in the motor segment.”
He added that the industry outlook remains positive with an expected growth of 15-20 per cent in FY27, supported by rising insurance penetration, digital adoption, and regulatory push towards achieving the ‘Insurance for All by 2047’ vision.
In FY26, the government’s decision to reduce GST rates on retail health insurance policies in September 2025 gave a push to health insurance premiums in the second half of the financial year (H2FY26), with companies reporting an increase in both policy sales and average ticket size. In addition, the rationalisation of GST for vehicles nudged the growth in motor insurance premiums.
“Excluding specialised insurers, industry GDPI grew by 9.4 per cent in FY2026, driven by the low base of FY2025 and GST relaxations that supported growth in the health segment. This was partly offset by the impact of the 1/n regulations on long-term policies, which weighed on H1FY2026 growth, and a sharp decline in crop insurance. Growth strengthened materially in March 2026, with industry GDPI rising 10.6 per cent Y-o-Y, while SAHI outperformed significantly with a growth of 21.9 per cent,” said Neha Parikh, vice president and sector head, financial ratings, ICRA.
“ICRA expects GDPI to grow stronger by 9.7-10.6 per cent in FY2027, with health insurance remaining the primary growth driver,” she added.
Among the major insurance companies — the leader — New India Assurance’s premium saw 10.9 per cent Y-o-Y growth to ₹42,821.8 crore. ICICI Lombard General Insurance’s premium grew by 7 per cent Y-o-Y to ₹28,712.5 crore, Bajaj General Insurance’s premium expanded by 8.23 per cent Y-o-Y to ₹23,178.5 crore and United India Insurance’s premium increased by 6.7 per cent Y-o-Y to ₹21,422.6 crore.
The largest standalone health insurer, Star Health & Allied Insurance, saw 11.3 per cent Y-o-Y growth in premium to ₹18,605.5 crore, Care Health Insurance saw 20.91 per cent Y-o-Y rise to ₹10,031 crore. The premium collected by Niva Bupa Health Insurance rose by 27 per cent Y-o-Y to ₹8,585.9 crore.
In March 2026, the industry clocked nearly 9 per cent Y-o-Y growth in premium to ₹28,921.9 crore, with general insurers posting 8.05 per cent growth in premium to ₹22,913.9 crore and standalone health insurers posting 21.9 per cent Y-o-Y growth to ₹5,852.4 crore. The specialised insurers saw 73.16 per cent drop in premium to ₹155.6 crore.
 "health insurance")