How Did Public Sector Insurers Achieve 15% Premium Growth in August?
Click to start listening
Synopsis
Discover how India's public sector general insurers achieved a remarkable 15% growth in premiums last August, marking eleven consecutive months of expansion. This article delves into the driving forces behind this growth and the effects of recent regulatory changes on the insurance landscape.
Key Takeaways
- Public sector insurers achieved a 15% premium growth in August.
- The total premium reached Rs 6,496 crore.
- Growth driven by renewals in fire, health, and motor insurance.
- Private insurers maintain a strong market share of 70%.
- Health insurance segment showed significant growth of 14.3%.
New Delhi, Sep 18 (NationPress) India's public sector general insurers have sustained their robust growth trajectory for the eleventh month in a row, achieving a remarkable 15% year-on-year increase in premiums, amounting to Rs 6,496 crore, according to a report released on Thursday.
The premium collected by public sector insurers was Rs 5,649.5 crore during the same month last year (August 2024).
According to CareEdge ratings, this growth is primarily attributed to renewals in the fire, engineering, health, and motor third-party segments.
Nevertheless, the transition to the “1/n rule” due to GST reforms has impacted the overall headline growth.
The non-life insurance sector is still facing a slowdown in premium growth, with total collections amounting to Rs 24,953.0 crore—a modest 1.6% increase year-on-year, compared to a 4.2% rise in August 2024.
At the same time, private non-life insurers (including SAHI or standalone health insurers) maintained a commanding 70% market share in both August 2024 and August 2025, up from 68% in August 2023.
On an annual basis, private insurers held a significant share of 64.8% as of August 2025, though this is slightly lower than the 66.4% share reported a year prior.
Conversely, the share of public sector insurers grew to 35.2% from 33.6% in August 2024.
The report emphasized that health insurance remains the largest segment within the non-life insurance industry, with a 14.3% growth in premiums, rising from Rs 8,038 crore in August 2024 to Rs 9,183.7 crore in August this year.
The group health segment exhibited the fastest growth year-to-date (YTD) FY26, driven by policy renewals and premium increases amid rising medical inflation.
However, growth has moderated to 10.0%, down from 16.7% in the same period last year. Retail health insurance growth slowed to 8.5% in YTD FY26, down from 18.3% witnessed in YTD FY25.
Point of View
I emphasize the importance of understanding the dynamics within the insurance sector. The sustained growth of public sector insurers, despite challenges, reflects a resilient market. However, stakeholders must navigate the complexities introduced by regulatory reforms to maintain this upward trajectory.
NationPress
20/09/2025
Frequently Asked Questions
What factors contributed to the premium growth of public sector insurers?
The premium growth was primarily driven by renewals in key segments such as fire, engineering, health, and motor third-party insurance.
How does the GST reform impact insurance growth?
The switch to the '1/n rule' due to GST reforms has impacted the overall headline growth in the insurance sector.
What is the current market share of private non-life insurers?
Private non-life insurers, including standalone health insurers, maintained a 70% market share in August 2024 and August 2025.
How has health insurance performed in recent months?
Health insurance remains the largest segment, showing a 14.3% growth in premiums from August 2024 to August 2025.
What trends are observed in retail health insurance?
Retail health insurance growth has moderated to 8.5% in YTD FY26, down from 18.3% in YTD FY25.
