India’s Non-Life Insurance Sector Hits ₹3.36 Lakh Crore in FY26, Fueled by Health Segment

The Indian non-life insurance industry recorded a 9% year-on-year growth in the 2025-2026 fiscal year (FY26), bringing the total gross direct premium income to ₹3.36 lakh crore. This marks an acceleration compared to the 6% growth (₹3.07 lakh crore) seen in FY25, largely driven by a surge in health insurance demand following strategic tax reforms.

Key Drivers: The GST Catalyst

A major turning point for the sector was the government’s decision to exempt individual health policies (including family floater and senior citizen plans) from GST, effective September 22, 2025.

• Standalone Health Insurers (SAHIs): Reported a robust 19% growth, reaching ₹45,866 crore.

• Momentum: Monthly growth rates for health insurance spiked to 35–40% in the months following the GST cut.

Performance Breakdown by Segment

The General Insurance Council’s provisional data highlights a steady climb across both public and private players:

1. Public Sector General Insurers

The four state-owned giants reported an 8% increase, totaling ₹1.03 lakh crore (37% market share).

• The New India Assurance: Led the pack with 11% growth (₹42,822 crore).

2. Private General Insurers

The 21 private players collectively grew by 8%, reaching ₹1.76 lakh crore.

• SBI General: Outperformed many peers with a 15% jump to ₹15,904 crore.

• Tata AIG: Saw a significant climb to ₹20,050 crore (up from ₹17,703 crore).

• ICICI Lombard: Recorded a 7% rise to ₹28,712 crore.

• HDFC Ergo: Noted a slight outlier with a 5% decline to ₹15,025 crore.

3. Standalone Health Insurers (SAHIs)

• Star Health: Reached ₹18,605 crore (up 11%).

• Niva Bupa: Experienced a sharp 27% rise to ₹8,586 crore.

• Aditya Birla Health: Grew by 29% to ₹6,238 crore.

Sector Comparison at a Glance

Note: The health segment remains the industry’s primary engine, benefiting significantly from improved affordability and heightened consumer awareness following policy changes.