India’s non-life insurance industry recorded near-flat growth in October 2025, with premium collections rising a marginal 0.1 per cent year-on-year to Rs 29,617.6 crore, according to a report by CareEdge Ratings. The minimal growth, the lowest monthly expansion in the 2026 financial year, was primarily due to a steep decline in the crop insurance segment, which negated the robust performance of the retail health insurance sector. 

The October 2025 growth rate marks a significant slowdown from the 27.5 per cent increase recorded in October 2024 and the 13.2 per cent growth seen in September 2025. The report, based on data from the General Insurance Council and the Insurance Regulatory and Development Authority of India (IRDAI), attributes the flat performance to a 71.6 per cent year-on-year drop in crop insurance premiums, driven by reduced state participation and rabi enrolment season deadlines.

Divergent Performance Across Segments

While the overall market was stagnant, the health insurance segment demonstrated resilience. Total health premiums grew 3.3 per cent in October, with the retail sub-segment surging 33.1 per cent. This strength was partly supported by a recent GST exemption, which improved affordability for individual policyholders. Standalone health insurers (SAHIs) were key drivers, seeing their premiums jump 38.3 per cent and increasing their market share in health premiums to 30 per cent.

In contrast, the non-life market excluding health contracted by 2.1 per cent in October. The motor insurance segment showed steady growth, with third-party premiums rising 10.7 per cent and own-damage premiums increasing 9.8 per cent. The fire insurance segment also saw a strong recovery, growing 19.6 per cent in the year-to-date period of FY26, a sharp reversal from a 3.1 per cent decline in the same period last year.

Sector Outlook And Challenges

According to CareEdge Ratings, the sector's trajectory will be shaped by competition, regulatory developments, and global economic uncertainties. "Non-life insurance premiums surpassed Rs 1.65 lakh crore in the first half of FY26, underpinned by regulatory support, increased digitalisation, and a growing middle-class customer base," said CareEdge Ratings, Director, Phyesh Ruparelia.

However, the report also notes potential headwinds. Reduced distributor commissions, implemented to offset the loss of input tax credits following the GST change, may strain distribution channels and could weigh on future premium growth. The performance of the crop insurance segment remains a volatile factor, heavily influenced by government schemes and monsoon patterns.