India's general insurance sector sees 24% growth after GST exemption
What's the story
India's general insurance sector witnessed a remarkable growth of 24.1% year-on-year (YoY) in November. The surge was primarily driven by an increase in motor sales and a rise in retail health demand after the Goods and Services Tax (GST) exemption. Standalone health insurers recorded an impressive 35.8% YoY growth, while private multi-line insurers matched this momentum with a 35.5% increase.
Sector performance
Public sector insurers lag behind in growth
Unlike their private counterparts, the public-sector insurers witnessed a marginal decline of 0.4% YoY. This stark contrast highlights the growing consumer preference for private players, especially in the motor and health segments. These two sectors are believed to have contributed significantly to November's growth spurt in the general insurance industry.
Market dynamics
Market share shifts in the general insurance sector
Despite the growth, general insurers lost 160 basis points (bps) YoY to a market share of 52.9%. However, public sector insurers and standalone health insurers gained 39bps and 70bps market share, respectively, taking their shares to 31% and 12.2% of the market. This shift indicates a changing landscape in India's general insurance industry, reflecting varied performance metrics among different types of insurers.
Top performers
Bajaj Allianz leads the pack with a 193% jump
Among the major players, Bajaj Allianz General Insurance topped the charts with an astonishing 193.1% YoY jump in Gross Direct Premium Income (GDPI). The company's market share for FY26-to-date improved by 18bps to 7.9%. Niva Bupa also outperformed health insurers with a growth of 47.1% YoY while Star Health lagged behind its peers with a premium increase of just 19% YoY.