India’s non-life insurance sector posted modest growth in the first five months of FY26, with total premiums reaching ₹1.34 trillion, up 6.05% year-on-year. This performance, while positive, reveals structural limitations as multiple segments within the industry show signs of stagnation or contraction.
The largest contributor, general insurers, reported ₹1.15 trillion in premiums—growing ~6% compared to the same period in FY25. However, this is below double-digit expectations often seen in a developing insurance market. Standalone health insurers (SAHIs) fared slightly better with an 8.78% increase, collecting ₹16,130.87 crore. The most concerning trend came from specialised insurers, which saw a 4.04% decline, with premiums down to ₹3,124.24 crore.
The Public sector Non-Life Insurers posted a double-digit growth of 12% during the Apr-Aug FY26 with gross direct premium underwritten of ₹44,071.78 crore over the same period last year. Notably, the Private sector Non-Life Insurers earned premiums of ₹50,168.75 crore with a growth rate of just 2% during the same period.
This single-digit growth trajectory in FY26 so far, underscores the urgent need for product innovation, digitally enabled distribution, and geographic diversification. While FY26 has started on a cautious note, the right mix of risk management, reinsurance strategy, and technology integration could unlock more robust growth in H2.