Standalone health insurers grow 30.9% YoY, likely to remain ahead of diversified players: YES Securities
New Delhi, July 9
Standalone health insurers are expected to continue outperforming diversified private general insurers as strong premium growth and rising market share indicate sustained demand for health insurance, according to a YES Securities report.
The brokerage said standalone health insurers remained the strongest-performing segment in June 2026, suggesting that health insurance could be a key growth driver for the industry.
"Standalone health insurers continue to outperform diversified private sector players," the report said.
Gross Direct Premium Income (GDPI) for standalone health insurers rose 30.9 per cent year-on-year to Rs 43.7 billion in June, significantly higher than the 15.1 per cent growth recorded by private diversified insurers and the 13.2 per cent growth seen in public sector diversified insurers. On a monthly basis, health insurers also recorded a 13.8 per cent rise in premium collections.
The report noted that standalone health insurers increased their market share to 16.1 per cent in June, up from a year earlier, reflecting continued customer demand for specialised health insurance products.
Among individual companies, Star Health reported GDPI of Rs 15.9 billion, up 19.2 per cent year-on-year, while Niva Bupa posted one of the strongest growth rates with premiums rising 34.3 per cent to Rs 8 billion. Care Insurance also reported healthy premium growth of 41.9 per cent year-on-year.
Within diversified private insurers, HDFC ERGO recorded 33.5 per cent year-on-year growth despite a monthly decline, Bajaj Allianz General's premiums rose 21.8 per cent, while ICICI Lombard reported 13.7 per cent growth. Go Digit, however, saw premiums decline 2.8 per cent year-on-year.
The report also showed that the overall general insurance industry recorded GDPI of Rs 271.96 billion in June, up 16.1 per cent year-on-year and 12.4 per cent over the previous month.
The continued strength of standalone health insurers could encourage greater competition and product innovation in the health insurance segment. For consumers, this may translate into a wider choice of health insurance products.
— ANI
Reader Comments
Good to see Niva Bupa growing at 34%! But I hope these standalone insurers don't become complacent. Claims settlement ratio is still the biggest concern for policyholders. Fast growth is fine, but if they deny claims later, all this premium growth won't mean anything to the common man.
As someone working in healthcare finance, this trend makes sense. Standalone insurers are more agile - they can launch products for specific needs like critical illness or senior citizen coverage much faster than diversified players. The market share increase to 16.1% is just the beginning. Expect more competition and hopefully, lower premiums for consumers! 🏥
Yaar, but why is Go Digit declining? I thought they were supposed to be the 'disruptor' with their digital-first model. Maybe their claim process is not as smooth as advertised? Or maybe the market is just favouring specialists now over generalists. Either way, consumers need to do proper research before buying any policy.
This is great news, but I'm cautiously optimistic. Remember when health insurance premiums were increasing by 20-30% annually after COVID? If these standalone players keep growing, they better not increase premiums disproportionately. The real test will be when they have to pay out for major hospitalisation claims, not just collect premiums. 🤔
As a policyholder with Star Health, I've had mixed experiences. Premiums are reasonable but claim settlement took almost 45 days last time. With 19% growth, I hope they invest more in technology to speed up processes. Also, IRDAI should ensure these companies maintain adequate solvency margins. Health insurance
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