Following the rollout of recent GST reforms, India's non-life insurance industry witnessed steady growth in September 2025, driven by improved sentiment in the general and health insurance segments.
According to data released by the General Insurance Council (GIC), general insurers' gross direct premium income rose marginally by 1.94% year-on-year (YoY) to Rs 23,430.96 crore, while standalone health insurers (SAHIs) recorded 3.09% growth to Rs 3,492.71 crore.
This comes after the GST Council earlier this month announced a complete exemption on all individual life and health insurance policies, along with the reinsurance of such policies - a reform expected to make insurance more affordable and boost overall penetration.
Mixed Performance Across General Insurers
Among the multi-line insurers, performance varied significantly across companies.
- New India Assurance reported a 3.52% YoY growth in premiums to Rs 3,252.03 crore, while ICICI Lombard saw a 6.20% rise to Rs 1,931.24 crore.
- Among public sector insurers, National Insurance reported a sharp 20.12% YoY decline, whereas Oriental Insurance grew 4.45% to Rs 2,181.82 crore, and United India Insurance posted a robust 23.36% increase to Rs 1,626.98 crore.
- On the private side, HDFC Ergo registered a 3.87% drop in premiums to Rs 1,667.24 crore, while Bajaj Allianz General Insurance surged 31.35% YoY to Rs 2,218.80 crore, and Tata AIG General Insurance grew 4.28% to Rs 1,830.45 crore.
Overall, the non-life insurance industry's gross premiums rose 13.17% YoY to Rs 31,177.59 crore in September 2025, largely supported by strong performances from specialised insurers.
Health Insurers Maintain Steady Momentum
In the health insurance segment, Star Health and Allied Insurance maintained its leadership position with premiums growing 3.09% YoY to Rs 3,492.71 crore.
However, Niva Bupa Health Insurance saw a 1.45% decline to Rs 592.81 crore during the month.
Industry experts noted that direct year-on-year comparisons remain imperfect due to the Insurance Regulatory and Development Authority of India (IRDAI)'s revised accounting format for long-term premium reporting, which became effective from October 1, 2024.
Specialised Insurers Outperform with 261% Growth
The standout performers of September were specialised insurers, who reported an impressive 261.52% YoY growth in premiums to Rs 4,253.92 crore.
The Agriculture Insurance Company of India alone posted a 295.04% surge to Rs 4,119.16 crore, driven by the ongoing Kharif crop season and government-backed insurance schemes.
Half-Yearly Outlook: April-September FY26
For the April-September FY26 period, non-life insurers are projected to collectively record Rs 1.53 trillion in premiums, reflecting a 7.32% YoY growth.
- General insurers posted 5.27% YoY growth to Rs 1.31 trillion.
- Standalone health insurers (SAHIs) grew 7.72% YoY to Rs 19,623.95 crore.
- Specialised insurers reported a strong 66.43% YoY increase to Rs 7,378.17 crore.
Industry analysts believe the GST exemptions on life and health insurance will help expand India's insurance base and enhance affordability for middle-class households, while ongoing regulatory simplifications could support sustainable growth through FY26.
Conclusion
The GST-driven tax relief for life and health insurance, coupled with improving digital distribution and rural outreach, has started to reflect in the sector's growth metrics. While public sector insurers face uneven performance, the private and specialised segments continue to drive overall industry expansion.
As the insurance landscape evolves post-GST reforms, insurers are expected to see stronger policy renewals, reduced compliance costs, and better premium retention over the coming quarters.
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