Premiums collected from non-life insurance schemes grew 13.7% year-on-year in December to Rs 28,446.8 crore due led by growth in segments such as health, motor, and fire, according to a CareEdge report.
The double-digit growth, recorded for a second straight month, was also elevated due to a low base as premium growth in December 2024 was impacted by the implementation of the 1/n rule.
The accounting change rule for the industry implemented by the Insurance Regulatory and Development Authority (IRDAI) requires premiums and related expenses such as commissions of longer term policies to be recognised daily over the policy’s term. Earlier, this was recognised upfront. The rule spreads the insurers’ costs but reduces their upfront profits.
Gross direct premium underwritten by private general insurers surged 60% year-on-year to Rs 13,621.4 crore in December, recovering from a fall in the year ago period. This represents the total premium collected by an insurer before any expenses and payouts. The gross direct premium underwritten by public general insurers saw a more modest 15% growth to Rs 10,126.4 crore. Those underwritten by specialised public sector undertaking insurers fell over 65%, while that by standalone health insurance companies rose nearly 39%.
“December 2025 witnessed a broad-based recovery in premium growth across public and private general insurers, supported by a favourable base… private insurers saw a sharp turnaround, recording a significant 60.3% growth, attributed to strong traction in the health insurance segment, pricing discipline, and quarter-end-driven demand. Private non-life insurers, including standalone health insurers, continued to dominate the market, holding a 78% share in December 2025, up from 72% in December 2024 and 73% in December 2023,” the report stated.
Health insurance remained as the largest segment in the non-life insurance sector, with premiums growing 33% to Rs 12,127.1 crore driven by stronger performance in the retail segment, where the effect of the GST rate cut on individual health policies was evident, the report said. Growth was also driven by policy renewals.
Premiums from motor insurances, which is the second-highest contributor in the non-life insurance industry, rose 12% in December to Rs 9,735.7 crore. Among all segments, only crop insurance saw a decline, with premiums falling 68% to Rs 947 crore due to “reduced state-level participation, limited premium recognition outside peak kharif and rabi execution windows, and limited carryover of deferred premium recognition from preceding months,” CareEdge said.
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