Whalesbook
December Sees Robust Non-Life Insurance Premium Growth
The non-life insurance industry in India recorded its second-strongest monthly expansion in gross direct premium collections during December, signaling robust market momentum. The sector posted a 14% year-on-year increase, accumulating ₹28,446.82 crore in gross direct premium income. This performance builds on November's substantial 24.2% jump, which had reached a 13-month high.
Standalone Health Insurers Lead the Charge
A significant driver behind December's surge was the performance of standalone health insurers. These entities collectively reported a 39% year-on-year rise in premiums, reaching ₹4,260.10 crore. Star Health and Allied Insurance, the largest player, saw its premiums climb 24% to ₹1,712 crore. Niva Bupa, Aditya Birla Health Insurance, and Care Health Insurance each reported growth ranging from 40% to 65%, underscoring broad-based strength in the health segment.
The impetus for this growth can be traced back to the government's decision on September 22, 2025, to fully exempt GST on all individual health insurance policies, including family floater and senior citizen plans. This move has demonstrably improved affordability and stimulated demand.
Public and Private General Insurers Post Solid Gains
Public sector general insurers demonstrated healthy growth, with the four state-owned companies — National Insurance, The New India Assurance, Oriental Insurance, and United India Insurance — collectively registering a 15% increase in gross premium collections to ₹10,126.36 crore. National Insurance was a standout, reporting a 37% surge in premium income to ₹1,520.36 crore.
Private players also contributed significantly. The 21 private general insurers collectively saw gross direct premiums rise by 15% year-on-year to ₹13,621.42 crore. Key performers included ICICI Lombard, which reported a 16% premium increase to ₹2,277.86 crore, and HDFC Ergo General Insurance, with a notable 36% rise to ₹1,283.42 crore. Tata AIG also posted a 12% growth to ₹1,684.87 crore.
Outlook Remains Positive
Brokerage firm Emkay Global anticipates continued healthy gross written premium growth for general insurers in the December 2025 quarter. The outlook is supported by strength in both the motor and health insurance segments. Growth in motor insurance is likely to be driven by strong new-vehicle sales, potentially aided by prior GST rate adjustments. The retail health segment is poised for robust expansion, directly benefiting from increased affordability following GST exemptions.