India's non-life insurance sees sharp recovery in June on health, motor

India's non-life insurance sector's GWP (ex-crop) grew 18% YoY in June 2026, a sharp recovery driven by robust growth in health (23%) and motor (14%) insurance, while commercial lines like fire insurance saw a decline, states a new report.

India's non-life insurance sector witnessed a sharp recovery in June 2026, led by robust momentum in health and motor insurance, even as commercial segments such as fire insurance remained under pressure, according to a Kotak Institutional Equities report. The report said overall gross written premium (GWP), excluding crop insurance, rose 18 per cent year-on-year in June, marking a significant improvement over the trends seen in the previous two months. For the first quarter of FY27, industry growth stood at 12 per cent year-on-year.

Sector Performance Breakdown

"The non-life industry recorded strong growth in June 2026, with GWP growth at 18% yoy (ex-crop), primarily driven by health premiums (up 23% yoy) and motor insurance (up 14% yoy), while commercial lines such as fire and marine hull remained weak," the report said.

Health and Motor Insurance Lead Growth

Health insurance continued to remain the biggest growth driver during the month. Retail health premiums surged 33 per cent year-on-year, extending the strong momentum witnessed over the past few quarters, while overall health premiums grew 23 per cent. Motor insurance also gained pace with 14 per cent growth, supported by higher own-damage and third-party premium collections amid healthy passenger vehicle and two-wheeler sales.

Commercial Lines Under Pressure

In contrast, fire insurance continued to weigh on industry performance, with premiums declining 23 per cent year-on-year due to sustained pricing pressure in the commercial insurance market.

Private Insurers Gain Market Share

The report noted that private insurers and standalone health insurers (SAHIs) continued to outperform state-owned peers, gaining market share on the back of strong retail health demand. "SAHIs reported robust 30% yoy growth, significantly outpacing general insurers, while private players reported ~15% yoy growth versus 13% yoy for PSUs," the report said. It added that SAHI market share, excluding crop insurance, increased by around 140 basis points year-on-year to 15.9 per cent in June.

Future Outlook

Looking ahead, the report suggests that the sector's growth outlook remains favourable, with retail health and motor insurance expected to continue supporting premium expansion. However, commercial segments, particularly fire insurance, are likely to remain a drag until pricing conditions improve. "Retail health continued to anchor growth, reporting strong 33% yoy growth in June 2026... while overall health premiums grew 23% yoy. Motor growth also picked up to 14% yoy... In contrast, commercial lines, especially fire, declined 23% yoy, reflecting continued pricing pressure," the report said. (ANI)

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