Private general insurers and standalone health insurers (SAHIs) continued to outperform public sector insurers, gaining market share during the month.

India's non-life insurance industry maintained steady premium growth in May 2026, with strong performances by ICICI Lombard General Insurance, Niva Bupa Health Insurance and Star Health and Allied Insurance helping sustain industry momentum despite continued weakness in commercial lines.

Gross written premium (GWP), excluding crop insurance, rose 9 per cent year-on-year in May, unchanged from April's pace, driven by healthy growth in retail health and motor insurance. However, fire and engineering insurance remained under pressure amid continued pricing weakness.

Kotak Institutional Equities said private general insurers and standalone health insurers (SAHIs) continued to outperform public sector insurers, gaining market share during the month. Retail health premiums grew 30 per cent year-on-year, while overall health premiums increased 14 per cent. Motor insurance premiums rose 12 per cent, led by 15 per cent growth in own-damage policies and 10 per cent growth in third-party insurance.

Commercial lines remained subdued, with fire insurance premiums declining 24 per cent year-on-year after contracting throughout the first four months of 2026. Engineering premiums grew just 1 per cent, while marine and personal accident segments expanded 40 per cent and 38 per cent, respectively.

How they stack up

Among insurers, ICICI Lombard reported 12 per cent year-on-year premium growth, supported by a 24 per cent rise in health premiums and 14 per cent growth in motor insurance. Retail health premiums surged 69 per cent, while motor third-party premiums increased 18 per cent, although fire premiums fell 20 per cent.

Bajaj Allianz General Insurance posted relatively muted growth of 2 per cent, or 6 per cent excluding crop insurance, reflecting slower motor premium growth of 6 per cent and a 28 per cent decline in fire premiums. Its health business grew 11 per cent, aided by a 23 per cent increase in retail health premiums.

Standalone health insurers continued to outpace the broader industry. Niva Bupa reported 30 per cent year-on-year premium growth, driven by a 45 per cent increase in retail health premiums, while Star Health posted around 19 per cent growth, supported by a 22 per cent rise in retail health. Star Health's group health portfolio, however, declined 40 per cent as the company continued to reduce exposure to that segment.

The brokerage said standalone health insurers reported 31 per cent year-on-year premium growth in May, while private general insurers grew around 12 per cent. In contrast, public sector general insurers reported a decline of about 4 per cent. Standalone health insurers' market share increased to around 16 per cent, while private general insurers' share rose to about 55 per cent.

Source - https://bfsi.economictimes.indiatimes.com