Retail health premium growth rises to 31% YoY in April 2026, anchoring non-life insurance sector: Kotak
New Delhi, May 22
Retail health insurance premium growth in India edged up to 31 per cent year-on-year in April 2026, anchoring the non-life insurance industry's performance at the start of the fiscal year, according to a report by Kotak Institutional Equities.
The report detailed that retail health continued to anchor growth, reporting strong 31 per cent yoy growth in April 2026, following 28 per cent growth in 4QFY26 and 33 per cent growth in 3QFY26, while overall health premiums grew 21 per cent YoY in April 2026. Motor growth also remained healthy at 16 per cent YoY, supported by both motor OD (up 18%) and motor TP (up 14%).
The sector witnessed an overall moderate gross written premium (GWP) growth of 9 per cent YoY, excluding the crop segment, amid mixed performance across different commercial lines.
The report noted that the non-life industry recorded moderate growth in April 2026, with GWP growth at 9 per cent yoy (ex-crop), primarily driven by health premiums (up 21% YoY) and motor insurance (up 16% YoY), while commercial lines such as fire and aviation remained weak.
The growth trajectory highlighted a stark divergence between private players and public sector undertaking (PSU) insurers. Standalone health insurers (SAHIs) and private general insurers continued to capture market share from their public sector counterparts.
"SAHIs and private GIs reported stronger growth than PSUs during the month. SAHIs reported robust 35 per cent yoy growth, significantly outpacing general insurers, while private players reported ~10 per cent yoy growth versus muted 2 per cent yoy growth for PSUs," the report stated.
This growth led to notable market share gains for the private segment. According to the report, "SAHI market share increasing ~200 bps yoy to 22.5 per cent and private GI market share rising ~400 bps yoy to 41.1 per cent in April 2026. Private GIs also gained share in motor insurance, with market share increasing ~280 bps yoy to 72.1 per cent."
Within the key segments, commercial insurance lines faced headwinds during the month, particularly the fire segment, which dragged down the broader commercial portfolio due to pricing adjustments. However, the marine and engineering segments managed to buck the downward trend in commercial lines.
— ANI
Reader Comments
Interesting data, but I wonder how much of this growth is actually due to rising premiums versus more people buying insurance. The report mentions "pricing adjustments" in the fire segment dragging commercial lines – that suggests insurers are hiking rates across the board. For middle-class families, health insurance is becoming a huge chunk of monthly expenses. We need more transparency from IRDAI on whether this is genuine penetration growth or just price inflation.
The stark divergence between private and PSU insurers is no surprise – PSUs like New India and United India have been struggling with legacy issues, slow claim processing, and outdated technology for years. While I'm happy for the private players' growth, I do feel for PSU employees. The government needs to either revamp these companies or merge them. However, for customers, the shift is positive – faster claims, better customer service from SAHIs like Star Health.
Motor OD up 18% and TP up 14% is also noteworthy. With so many new cars and two-wheelers on Indian roads, mandatory third-party insurance is a given, but people are also buying comprehensive policies now. The fact that 72% of motor insurance is with private players shows that PSUs have completely lost the plot there. But I hope the regulator keeps an eye on premium hikes – some private insurers have been aggressively increasing rates post-COVID.
Great to see SAHIs growing at 35% YoY! As someone who works in the health insurance sector, I can confirm that COVID really changed people's mindset. Earlier, health insurance was an afterthought – now it's a necessity. The 200 bps market share gain for SAHIs shows customers prefer specialized insurers over general ones. Only concern: with such rapid growth, will claims servicing infrastructure keep pace? I've seen some smaller SAHIs struggling with hospital network expansion.
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