Non-Life Insurance Premiums Surge 14% in December 2025
The non-life insurance sector in India witnessed robust growth in December 2025. Premiums collected from various insurance schemes increased by 13.7% year-on-year, reaching Rs 28,446.8 crore. This marks the second consecutive month of double-digit growth for the industry.
Key Drivers: Health, Motor, and Fire Segments
Strong performance in health, motor, and fire insurance segments propelled this growth. Health insurance remained the largest contributor, with premiums soaring 33% to Rs 12,127.1 crore. The retail segment showed particularly strong traction, benefiting from the recent GST rate cut on individual health policies.
Motor insurance, the second-largest segment, recorded a 12% increase in premiums to Rs 9,735.7 crore. Fire insurance also contributed positively to the overall growth figures.
Private Insurers Lead with 60% Surge
Private general insurers demonstrated remarkable performance. Their gross direct premium underwritten surged 60.3% year-on-year to Rs 13,621.4 crore in December. This represents a sharp recovery from the decline experienced in the same period last year.
Private non-life insurers, including standalone health insurance companies, now dominate the market. They held a 78% share in December 2025, up from 72% in December 2024 and 73% in December 2023.
Public Sector Shows Mixed Results
Public general insurers recorded more modest growth of 15%, with premiums reaching Rs 10,126.4 crore. Specialised public sector undertaking insurers, however, saw their premiums fall by over 65%. Standalone health insurance companies performed well, with premiums rising nearly 39%.
Impact of Regulatory Changes
The December growth figures were partly elevated due to a low base effect. Premium growth in December 2024 was impacted by the implementation of the 1/n rule by the Insurance Regulatory and Development Authority (IRDAI).
This accounting change requires premiums and related expenses for longer-term policies to be recognized daily over the policy's term, rather than upfront. While this spreads insurers' costs, it also reduces their immediate profits.
Crop Insurance Sees Decline
Among all segments, only crop insurance experienced a downturn. Premiums in this segment fell 68% to Rs 947 crore. CareEdge attributed this decline to reduced state-level participation, limited premium recognition outside peak kharif and rabi execution windows, and limited carryover of deferred premium recognition from preceding months.
Market Outlook and Analysis
The CareEdge report highlighted a broad-based recovery in premium growth across both public and private general insurers. This recovery was supported by a favorable base and strong quarter-end demand.
Private insurers' strong performance was attributed to multiple factors. These included robust traction in the health insurance segment, disciplined pricing strategies, and increased demand driven by quarter-end factors. Policy renewals also contributed significantly to the growth momentum.
The report emphasizes that the non-life insurance sector continues to show resilience and growth potential. The consistent expansion across key segments indicates healthy demand for insurance products among Indian consumers and businesses.
