New Delhi: Non‑life insurance premiums in India grew 10 per cent year‑on‑year in August to Rs 27,455 crore, driven by strong growth in premiums of standalone health insurers, a report has said.
The report from CareEdge Ratings said the monthly headline numbers were driven by a timing shift in crop enrollment and that April–August FY27 growth rose to 9.6 per cent from 6 per cent a year earlier as the drag from fire and crop shrank.
Crop premium tripled from July to Rs 3,274 crore as states extended the Kharif enrolment deadline beyond 31 July and shifted business into August.
“Surge in crop premium has also cut the fire and crop-drag from 11.1 pp to 4.2 pp,” said the report.
Excluding fire and crop, industry growth eased to 14.3 per cent from nearly 17 per cent in July as motor vehicles slowed in line with vehicle sales.
“That moderation does not signal weakening retail demand. It reflects a slower month for vehicle registrations and the uneven booking of government health scheme premiums,” said Priyesh Ruparelia, Director, CareEdge Ratings.
Retail lines continued to drive industry expansion, with health up 32.5 per cent for a fifth straight month above 30 per cent and motor recording its fifth straight month of double‑digit growth.
Health accounted for 39.5 per cent of August premium and 44 per cent of premium for April–August FY27. Health premiums grew 18 per cent year‑on‑year in August to Rs 10,834 crore, compared with 26 per cent in July and 20.9 per cent year‑to‑date.
“Health remains the principal growth driver, and the quality of that growth has improved, with rising renewal rates, falling claims ratio and volumes coming from customers new to insurance,” Ruparelia said.
Reported retail health growth is likely to moderate from the second half of September as the GST-related base becomes comparable.
Private insurers and standalone health insurers wrote 73.3 per cent of August premium, the highest share this year, the report noted.
(IANS)
