Non-Life Insurance Premiums Surge by 10% in August, Health Segment Leads Growth

New Delhi, September 21 (Daily Kiran) : Non-life insurance premiums in India saw a significant increase of 10% year-on-year in August, reaching ₹27,455 crores. This growth was primarily driven by the health insurance segment, as detailed in a recent report.

According to CareEdge Ratings, the rise in premiums can be attributed to changes in the timing of crop registrations. Additionally, a decrease in fire and crop-related issues contributed to an increase in growth from 6% last year to 9.6% during the April-August period of fiscal year 2027.

In July, crop premiums surged threefold to ₹3,274 crores, as states extended the registration deadline for Kharif crops from July 31 to August.

The report stated that the increase in crop premiums reduced the impact of fire and crop-related losses from 11.1 percentage points to 4.2 percentage points.

Excluding crop and fire insurance, overall industry growth fell from nearly 17% in July to 14.3%, reflecting a slowdown in vehicle sales and motor insurance.

Priyesh Rooparelia, Director at CareEdge Ratings, explained that this slowdown does not indicate a drop in retail demand. Instead, it reflects a decline in vehicle registrations and fluctuations in the booking of government health scheme premiums.

The retail segment has been a key driver of industry expansion. Health insurance experienced a remarkable growth of 32.5% for the fifth consecutive month, while motor insurance also recorded double-digit growth.

In August, health insurance accounted for 39.5% of total premiums, and from April to August, it represented 44%. Health premiums grew by 18% year-on-year to ₹10,834 crores in August, following increases of 26% in July and 20.9% since the beginning of the year.

Rooparelia noted that the growth in health insurance remains robust, with improvements in renewal rates, a decrease in claims ratios, and an influx of new customers.

However, the pace of retail health growth may slow slightly in the latter half of September, as comparisons with GST-related bases become easier.

The report also highlighted that private insurers and standalone health insurers captured 73.3% of total premiums in August, marking the highest share this year.