Gross written premiums (GWP) in India's general insurance industry is expected to grow 13% y-o-y in FY2026, according to India Ratings. The article also indicated that this momentum is driven by value expansion, rather than new policyholder additions.
According to the India Brand Equity Foundation, analysts from India Ratings noted that rising inflationary trends and firming reinsurance rates in select business lines are also expected to support value-led growth. Increasing affordability, innovation and broader reach will strengthen volume expansion across the sector, as well.
The article stated that standalone health insurers are expected to be crucial contributors, as growth has been projected to be 21% y-o-y in 2026. It was noted that their share in total GWP increased to 41% in 2025, supported by rising health awareness and medical inflation.
“Recent price revisions in the health segment also lead to increased policy porting, reflecting a dynamic and evolving consumer base,” the article said.
Sustained by the government’s capital expenditure push, activity in the commercial line segment is anticipated to rise in 2026, as well. Although India Ratings pointed out that public sector insurers are still catching up with private players, ongoing reforms and strategic capital infusions means that the outlook holds promise.
At the same time, the article highlighted that insurance penetration in urban India is much higher than in the rural areas, which requires “deeper distribution, the right product-market fit for rural consumers and improved affordability”.?
Lastly, India Ratings noted that insurers benefit from stable investment income and capital gains despite pricing pressures, which support underwriting margins and strengthen sectoral return ratios.