Non-Life Insurance Premiums Rise 16% in June, Led by Health Segment Growth
India’s non-life insurance sector recorded its strongest monthly premium growth in five months during June 2026, supported by higher business volumes in general insurance and standalone health insurance segments.
According to data released by the General Insurance Council, gross direct premium underwritten by the industry increased 15.9% year-on-year to Rs. 24,194.56 crore during the month. This was the highest double-digit growth recorded since January 2026.
General insurers reported a 14.3% rise in premiums to Rs. 22,771.94 crore, while standalone health insurers witnessed a stronger growth of 30.9% with premiums reaching Rs. 4,373.34 crore. However, specialised insurers saw a sharp decline in premium collections during the period.
Private sector general insurers recorded higher growth compared with public sector players, with premiums increasing 15.2% and 13.1% respectively. Health insurers continued to outperform the overall market, driven by rising demand for medical protection products.
For the April-June quarter of FY27, the overall non-life insurance industry recorded 10.7% growth in gross direct premiums, indicating continued expansion in insurance demand.
New Cybersecurity Rules for Connected Vehicles May Increase Costs
India’s automotive sector is preparing for stricter cybersecurity requirements for connected vehicles, which could increase manufacturing costs while improving protection against digital threats.
Industry estimates suggest that compliance with upcoming cybersecurity standards may add around Rs. 10,000-15,000 to the cost of advanced connected vehicles due to investments required in secure electronic systems, software testing and long-term cybersecurity support.
The proposed changes are driven by draft rules issued by the Ministry of Road Transport and Highways, which seek mandatory compliance with Automotive Industry Standards AIS-189 for Cyber Security Management Systems and AIS-190 for Software Update Management Systems.
The regulations will apply initially to advanced automated vehicles before expanding to other categories including passenger vehicles, commercial vehicles, tractors and construction equipment.
While manufacturers may face higher development costs, consumers are expected to benefit from safer software updates, stronger protection of vehicle data and improved defence against cyberattacks. The move aligns India’s vehicle cybersecurity framework with international standards.
IPL Insurers Expect Lower Claims This Season Due to Fewer Disruptions
Insurance companies covering the Indian Premier League (IPL) are likely to record improved claims experience this season due to fewer weather-related disruptions and match cancellations compared with the previous year.
Industry executives estimate that insurers’ loss ratio from the tournament could remain around 60-70%, which is lower than the previous season by approximately 10-15 percentage points.
Experts attributed the improvement to limited event cancellation losses, although player injury-related claims continued to impact underwriting performance.
“The claims experience was better than the previous IPL season due to the absence of major disruptions, with only a few match abandonments and player injury-related claims. Industry loss ratios are estimated at around 60-70 per cent this time, compared to a higher level last year,” said Abizar Bohra, Head and Executive Vice-President, Sports, Leisure and Entertainment, Commercial Risk, India, at Aon.
The overall insurance coverage for IPL-related event risks is estimated at Rs. 2,500-3,000 crore, covering franchises and sponsors against potential cancellation-related losses.
Government Sets Performance Targets for Public Sector General Insurers
The government has introduced enterprise-level performance targets for state-owned general insurance companies for FY27, with a focus on improving underwriting performance, strengthening customer service and enhancing operational efficiency.
A key objective is to reduce the incurred claims ratio (ICR) of public sector general insurers to 85% over the next five years. This compares with the overall general insurance industry ICR of 82.9%, while the combined ICR of the four public sector insurers stood at 97.3% in 2025.
The insurers have been directed to improve the performance of their group health insurance portfolios by reducing the ICR by 3 percentage points annually. They have also been asked to increase their share in the retail health insurance market by at least 5% every year for the next five years.
Regional offices reporting health insurance ICR above 90% will need to provide explanations, with performance monitored by their respective head offices.
The government’s framework covers multiple areas including business strategy, customer service, technology adoption, human resource management and regulatory compliance. Insurers have also been instructed to identify reasons behind high loss ratios and implement corrective measures.
To improve claim efficiency, companies must increase cashless claim settlements by at least 5 percentage points annually in offices where the current ratio remains below 80%.
