Insurance Surge: Health Premiums Skyrocket 38% After GST Cut! See Which Companies Gained Big!

Health insurance firms have emerged as the top performers in India's non-life sector, posting a significant 38.3% year-on-year jump in gross premiums in October, reaching Rs 3,738 crore. This impressive growth, following a reduction in Goods and Services Tax (GST) rates on health insurance premiums, has spurred both new customer acquisition and policy renewals. Stand-alone health insurers (SAHIs) have seen their cumulative growth climb to 11.5% in the first seven months of FY26, substantially higher than the industry average of 6.1%.

Even before the GST cut, the segment showed steady expansion. Up to September 2025, SAHIs had already written Rs 19,271 crore in premiums, an 8.1% increase from the previous year. The overall health insurance market, including general insurers, grew 7.7% in the first half of FY26 to Rs 64,240 crore. This strong performance contrasts sharply with the overall non-life industry, which reported nearly flat growth of 0.1% in October.

Star Health and Allied Insurance Company Limited led the growth in October, adding Rs 266 crore to its premiums. Niva Bupa Health Insurance Company Limited and Aditya Birla Health Insurance Company Limited also recorded substantial gains, with growth rates of 67% and 54%, respectively. General insurers saw a more modest 1.7% growth in October, while specialized insurers faced a decline primarily due to lower crop cover premiums, though they showed a cumulative rise of 23.8% by October 2025.

Post the GST rate adjustment, the health insurance segment's share of the total non-life industry is expected to rise from 38.9% (as of September) towards 40%, with motor insurance maintaining its share at 28.9%. New India Assurance holds the largest share in the health insurance market with 17.6%, followed by Star Health (12.4%), Oriental Insurance (7%), Care Health (6.6%), ICICI Lombard (6.5%), and United India Insurance (nearly 6%).

Impact: This news signifies robust growth for the health insurance sector, driven by favorable policy changes and increasing consumer interest. Companies like Star Health, New India Assurance, and ICICI Lombard are likely to see enhanced revenues and profitability, potentially leading to increased investor confidence and positive stock performance. The sector is becoming a more significant contributor to the overall non-life insurance market in India. Rating: 7/10.

Difficult Terms: GST: Goods and Services Tax, a unified indirect tax system in India. Stand-alone Health Insurers (SAHIs): Companies that exclusively offer health insurance products. Gross Premiums: The total amount of premiums collected by an insurance company before deducting reinsurance costs. YoY: Year-on-Year, a comparison of a metric from one year to the same period in the previous year. FY26: Fiscal Year 2025-2026. Non-life sector: Refers to all insurance business excluding life insurance, including health, motor, fire, etc. Market Share: The percentage of total sales in an industry generated by a particular company.