India records premium rise in October as middle-class demand supports sales

Non-life insurers collected $18.15b in premiums during the first half of FY 2026.

India’s non-life insurance sector saw almost no growth in October 2025, with premiums rising just 0.1% year-on-year.

This was the lowest monthly increase in FY 2026. Premium collections for the month reached $3.26b (₹296.18b), compared with a 27.5% surge in October 2024 and 13.2% growth in September 2025.

The flat performance was mainly due to weaker crop insurance premiums, which offset gains in retail health.

According to CareEdge Ratings, non-life insurers collected $18.15b (₹1,650.00b) in premiums during the first half of FY 2026.

Director Priyesh Ruparelia said the sector continues to benefit from regulatory support, greater digital adoption and rising demand from India’s growing middle class.

He added that initiatives such as the Bima Trinity, improving retail health performance amongst standalone health insurers, and stronger vehicle sales following GST cuts will influence premium growth in the coming months.

Ruparelia noted that lower GST rates are expected to improve affordability, support policy sales and strengthen compliance, though overall growth will still depend on competition, regulatory changes and global economic conditions.

Associate Director Saurabh Bhalerao said the October slowdown was driven by weakness in crop insurance, despite steady renewals in fire and engineering lines and continued strong momentum from standalone health insurers.

However, he cautioned that reduced distributor commissions (introduced to offset the loss of input tax credits) may pressure distribution channels and could affect premium growth ahead.