General insurers recorded their second-highest monthly growth in gross direct premium collections in December, driven by a 39% rise in premiums from standalone health insurers.
The non-life insurance industry reported a 14% year-on-year (y-o-y) increase in gross direct premium income to Rs 28,446.82 crore in December, the second-strongest monthly expansion in the current financial year. The performance follows a 24.2% jump in November, when premiums climbed to a 13-month high of Rs 26,897.4 crore, powered largely by higher demand for health insurance after the government announced a cut in GST rates in September.
The non-life segment includes public and private general insurers, standalone health insurers and specialised public sector insurers.
Standalone Health Insurers Lead the Surge
Premium collections at the seven standalone health insurers rose 39% y-o-y to Rs 4,260.10 crore in December. Star Health and Allied Insurance, the largest player in the segment, reported a 24% increase in premiums to Rs 1,712 crore. Niva Bupa, Aditya Birla Health Insurance and Care Health Insurance posted growth of between 40% and 65% during the month.
From September 22, 2025, GST has been fully exempted on all individual health insurance policies, including family floater and senior citizen covers, a move that has boosted affordability and demand.
Performance of Public Sector and Private Players
The four state-owned general insurers—National Insurance, The New India Assurance, Oriental Insurance and United India Insurance—reported a combined 15% rise in gross premium collections to Rs 10,126.36 crore in December. National Insurance led the group, with premium income surging 37% to Rs 1,520.36 crore.
Private general insurers also posted solid growth. The 21 private players together posted a 15% y-o-y increase in gross direct premiums to Rs 13,621.42 crore. ICICI Lombard reported a 16% rise in premiums to Rs 2,277.86 crore, while HDFC Ergo General Insurance saw a 36% increase to Rs 1,283.42 crore. Tata AIG’s premium income grew 12% y-o-y to Rs 1,684.87 crore.
According to Emkay Global, general insurers are expected to report healthy gross written premium growth in the December 2025 quarter, driven by growth in the motor and health segments. “The Motor segment is likely to witness healthy growth trends, driven by strong new-vehicle sales on the back of reduction in GST rates, while the Retail Health insurance segment is expected to see robust growth with increased affordability following the GST rate exemptions in Retail Health insurance,” the brokerage said.