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India's non-life insurance industry is expected to see continued support from strong retail health and motor insurance demand, but growth is likely to remain moderated as weakness in commercial segments, particularly fire insurance, weighs on overall premiums, according to Kotak Institutional Equities.
The brokerage expects health insurance to remain a key growth driver, supported by sustained demand following the GST exemption on health insurance, while motor insurance should benefit from healthy vehicle sales. At the same time, continued pricing pressure in commercial insurance could constrain overall industry growth in the near term. The non-life insurance industry recorded 12 per cent year-on-year growth in gross written premium (GWP), excluding crop insurance, in July 2026, compared with 18 per cent growth in June. Growth was primarily driven by health premiums, which rose 26 per cent, and motor insurance, which increased 14 per cent. Retail health remained the strongest segment, growing 31 per cent year-on-year in July, matching its first-quarter FY27 growth. Overall health premiums also increased 26 per cent, with demand continuing to benefit from the GST exemption on health insurance. According to the report, motor insurance growth remained steady at 14 per cent, supported by motor own-damage premiums, which rose 17 per cent, and third-party premiums, which increased 12 per cent. The performance was broadly consistent with healthy vehicle sales. Commercial segments, however, remained under pressure. Fire insurance premiums declined 31 per cent year-on-year in July, extending a 28 per cent decline in the first quarter, reflecting continued pricing pressure. Engineering insurance growth moderated to 5 per cent, while marine insurance was a strong performer, rising 42 per cent, with marine hull premiums increasing 61 per cent. Standalone health insurers and private general insurers continued to outperform PSU insurers. Standalone health insurers reported 29 per cent year-on-year growth, while private general insurers grew around 17 per cent, compared with 6 per cent for PSU insurers. Market-share gains also continued for private players. Standalone health insurers' market share, excluding crop insurance, increased around 150 basis points year-on-year to 14.8 per cent in July, while private general insurers' share rose around 70 basis points to 50.8 per cent. Private general insurers retained a strong 72.5 per cent share of motor insurance. (ANI)
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