Non-life insurance premiums rose 15.9% year-on-year to Rs 27,196 crore in June 2026, sharply accelerating from 5.2% growth in June 2025, CareEdge said in its latest report. On a YTD basis for April-June FY27, premiums grew 10.7%, moderately higher than 8.9% in the same period of FY26.
“The performance was primarily driven by robust momentum in retail health, aided by the GST exemption on individual health insurance,” CareEdge said. “While health remained the principal growth engine, supported by both retail and group business, motor insurance also maintained healthy momentum on the back of robust vehicle sales and early signs of EV-led premium growth.”
However, CareEdge noted that “overall performance remained constrained by weakness in commercial lines, particularly fire insurance, and subdued crop insurance premiums.”
Private insurers and SAHIs drive June growth
The industry’s gross direct premium growth rose to 15.9% YoY in June 2026 from 5.3% in June 2025. “The primary drivers of the growth were private general insurers and SAHIs supported by continued momentum in the retail segments of health and motor insurance,” CareEdge said.
The growth in private insurers should be viewed in the context of “the base effect from the implementation of the 1/n accounting rule,” the report said. Public general insurers reported premium growth broadly in line with the corresponding period last year, although the sharp decline earlier in the quarter led to slower growth for Q1FY27.
SAHIs remain the fastest-growing category
Standalone health insurance companies (SAHIs) remained the fastest-growing category, with premiums rising 30.9% YoY in June 2026 from 10.4% in June 2025. YTD growth nearly tripled to 32.9% from 10%.
“This is consistent with the GST exemption on individual health premiums, given SAHIs’ concentration in retail health,” CareEdge said.
The combined market share of private insurers and SAHIs rose to around 67% YTD in FY27 from around 64.4% in FY26. SAHI market share within total health premiums increased to 37.9% in June 2026 from 35.7% in June 2025 and 26.4% in June 2024.
The moderation in the pace of market share gains “likely reflects overall health premium growth accelerating this year … raising the base against which SAHI’s gains are measured, rather than a genuine slowdown in SAHI momentum,” CareEdge said.
Health premiums grow 23.4% in June
Health premiums grew 23.4% YoY in June 2026, compared with 3.5% in June 2025. YTD growth nearly doubled to 19.9% from 8.2%, while health’s share of total non-life premiums rose to 44.2% from 40.8%.
Retail health premiums rose 33% YoY in June, with YTD growth reaching 31.6%. CareEdge said this was “directly supported by the reduced GST rate on all individual life and health insurance policies from 18% to zero, improving affordability specifically for retail/individual covers.”
Group health premiums grew 17.9% YoY in June, compared with 0.2% in June 2025. YTD growth improved to 14% from 9.7%.
Motor insurance maintains strong momentum
Motor insurance grew 14.1% YoY in June 2026, with YTD growth improving to 13.9% from 8.7%. The auto sector recorded its best-ever June in 2026, with overall retail growth of 21.83% YoY, passenger vehicle retail growth of 28.63%, two-wheeler growth of 21.22% and commercial vehicle growth of 16.88%.
Own-damage premiums grew 16.4% YTD, ahead of 12.2% growth in third-party premiums. CareEdge said OD premiums track new-vehicle sales more directly, while TP premiums are more price-linked.
EV insurance is emerging as a new growth pool, with EV penetration in new vehicle sales rising to 7.75% in June 2026 from 4.8% in June 2025. The segment “is expected to become an increasingly meaningful contributor to Motor premiums,” CareEdge said.
Fire and crop insurance remain weak
Fire insurance premiums contracted 22.5% YoY in June 2026, with YTD growth swinging to a 27.8% contraction from 17.1% growth.
Crop insurance premiums contracted 88.8% YTD in FY27, compared with a 50.4% decline in the corresponding period of FY26. CareEdge attributed the weakness to the timing of premium recognition, noting that “the Kharif enrolment window for FY27 will remain open till July 31.”
“Based on the premium recognition pattern observed during the Kharif enrolment period, premium collections would likely improve in July as enrolments gather pace towards the close of the current window,” CareEdge said.
