Niva Bupa, ICICI Lombard Lead July Insurance Growth; Non-Life Insurance GWP Growth Slows To 12%: Kotak Neo Research
Add Preferred News Source
Private insurers and standalone health insurers continued to gain market share at the expense of PSU players, even as fire insurance premiums extended their sharp decline in July.
India's non-life insurance industry recorded 12% year-on-year growth in gross written premium (GWP), excluding crop insurance, in July 2026, slowing from 18% growth in June, according to Kotak Neo Research. Health and motor insurance continued to support the sector, while commercial lines remained under pressure.
Retail health remained the biggest growth driver, with premiums rising 31% year-on-year in July, broadly in line with the growth recorded in Q1 FY27. Kotak Neo Research said demand continued to benefit from the GST exemption on health insurance, with overall health premiums rising 26% during the month.
Motor insurance grew 14% year-on-year, supported by a 17% increase in Own Damage (OD) premiums and 12% growth in Third Party (TP) premiums. The research note linked the steady growth to healthy vehicle sales.
The performance was weaker across several commercial segments. Fire insurance premiums declined 31% year-on-year in July, compared with a 28% fall in Q1 FY27, reflecting continued pricing pressure. Engineering insurance growth moderated to 5%, while marine insurance remained a strong performer, with premiums rising 42% and marine hull growing 61%.
Standalone health insurers (SAHIs) and private general insurers continued to grow faster than public sector insurers. SAHIs recorded 29% year-on-year growth in July, while private general insurers grew around 17% on an ex-crop basis, compared with 6% for PSU insurers.
The stronger growth also helped private insurers gain further market share. SAHIs' market share excluding crop insurance increased around 150 basis points year-on-year to 14.8% in July, while private general insurers gained around 70 basis points to reach 50.8%. Private insurers continued to hold a strong position in motor insurance, with a 72.5% market share.
Among individual insurers, ICICI Lombard reported 13% year-on-year growth in ex-crop GWP in July, up from 8% in Q1 FY27. Its motor business grew 17%, with motor TP and OD premiums increasing 18% and 16%, respectively. Health premiums rose 25%, helped by a 65% increase in retail health, while fire premiums declined 28%.
ICICI Lombard's reported GWP, however, fell 3% during the month because of lower crop insurance premiums. Kotak Neo Research attributed the decline to a timing difference.
Bajaj General recorded 11% growth in ex-crop GWP, led by a 23% increase in motor premiums and 31% growth in group health. Motor TP grew 27%. Overall health growth was limited to 3% as government scheme premiums declined 62%, although retail health increased 20%. Fire premiums fell 15%.
Niva Bupa remained one of the strongest performers, with overall GWP rising 34% in July. Retail health premiums jumped 47%, while group health growth moderated to 3%.
Star Health reported around 19% GWP growth during the month, with retail health premiums increasing approximately 22%. Its group business declined around 41%, while its retail health market share fell to 29.5% in July from 31.8% a year earlier.
Also Read - NSE IPO 2026: Will It Be India's Biggest IPO? September Launch In Focus
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
