Health Insurance Dominates India's Non-Life Industry with 40.8% Share

India's non-life insurance industry witnessed a significant rise in health insurance, with its share increasing to 40.8% in FY26 from 38.6% a year earlier. The health segment grew 15.4% to about Rs 1.4 lakh crore, while the non-life industry grew 9.3%, with total gross direct premium income reaching nearly Rs 3.4 lakh crore in FY26.

The top five insurers in the health segment were New India Assurance, Star Health & Allied Insurance, Care Health Insurance, ICICI Lombard, and Niva Bupa Health Insurance.

Standalone health insurers outperformed the broader industry with growth of 19.4%, while other segments showed mixed trends, including motor insurance, fire insurance, and personal accident insurance.

The expansion in health insurance anchored the industry's performance, with New India Assurance retaining its leadership with a market share of 12.8% and growth of 10.9%.

The immediate next steps for the industry will involve continued monitoring of the growth trends in various segments, with insurers expected to respond to the changing market dynamics and consumer demands.