The non-life insurance industry in India experienced a significant boost in December, with a 14% year-on-year increase in gross direct premium collections, reaching ₹28,446.82 crore. This growth is the second-strongest monthly expansion in the industry, following a substantial 24.2% jump in November. The main driver behind this surge was the performance of standalone health insurers, which reported a 39% year-on-year rise in premiums, reaching ₹4,260.10 crore. Star Health and Allied Insurance, the largest player, saw its premiums climb 24% to ₹1,712 crore.
The growth in the health segment can be attributed to the government’s decision to exempt GST on individual health insurance policies, making them more affordable and stimulating demand. Public sector general insurers also demonstrated healthy growth, with a 15% increase in gross premium collections to ₹10,126.36 crore. National Insurance reported a 37% surge in premium income to ₹1,520.36 crore. Private players, including ICICI Lombard and HDFC Ergo General Insurance, also contributed significantly to the growth, with a 15% year-on-year increase in gross direct premiums to ₹13,621.42 crore.
The outlook for the non-life insurance industry remains positive, with brokerage firm Emkay Global anticipating continued healthy growth in the December 2025 quarter. The growth is expected to be driven by strength in both the motor and health insurance segments. The retail health segment is poised for robust expansion, directly benefiting from increased affordability following GST exemptions. Additionally, growth in motor insurance is likely to be driven by strong new-vehicle sales, potentially aided by prior GST rate adjustments. Overall, the non-life insurance industry in India is expected to continue its growth momentum, driven by increasing demand for health and motor insurance products. With the government’s support and growing awareness among consumers, the industry is likely to experience sustained growth in the coming months.