Public sector non-life insurance companies — which had witnessed a decline in market share in previous years — have managed to regain some ground in the half-year ended September 2025, despite facing intense competition, according to the latest data.On a year-to-date (YTD) basis, private insurers’ share declined to 63.8 per cent as of September 2025 from 66.3 per cent a year earlier, while public sector insurers’ share improved to 31.7 per cent from 30.8 per cent in September 2024, indicating a gradual strengthening of their market position, said a CareEdge Ratings report. Government-owned New India Assurance increased its market share to 13.25 per cent at Rs 21,884 crore in the half-year ended September 2025 from 12.60 per cent in the same period a year ago. Oriental Insurance pushed up its share to 6.83 per cent from 6.53 1. per cent and United India Insurance to 6.62 per cent from 6.54 per cent, data from General Insurance Council showed.On the other hand, private sector ICICI Lombard’s market share came down to 8.68 per cent in the half-year ended September 2025 as against 9.36 per cent a year ago. Star Health Insurance witnessed a decline in market share at 4.88 per cent as against 5.08 per cent a year ago. HDFC Ergo share came down to 4.47 per cent from 5.77 per cent in the previous six-month period.The overall growth in non-life sector in the six-month period ended September 2025 was 7.31 per cent at Rs 1,65,156 crore as against a growth of 7.03 per cent a year ago, according to GI Council data.Meanwhile, the non-life insurance sector experienced a rebound, with a 13.2 per cent year-on-year growth in the month of September 2025 compared to a 6.5 per cent decline in September 2024 and 1.6 per cent growth in August 2025. While premium collections reached Rs 31,117.6 crore, the overall growth was supported by stronger renewals in core segments like motor, crop, fire, and engineering, coupled with rising demand in specialised lines and personal accident insurance, according to latest figures.“The recent GST reductions are likely to enhance affordability, boost policy sales, improve compliance, and increase penetration. Overall, the sector’s trajectory will be shaped by a combination of competition, regulatory developments and global economic uncertainties,” said Priyesh Ruparelia, director, CareEdge Ratings.GST cut, 1/n rule impactHealth insurance remained the largest segment within the non-life insurance industry, posting a 6.9 per cent growth in September 2025, largely supported by stronger performance in the other category and the effect of the GST rate cut in individual health policies. However, overall growth momentum has moderated due to the impact of the 1/n rule and affordability pressures from rising premiums.Story continues below this adThe 1/n rule in insurance refers to an accounting approach for long-term non-life insurance contracts, where premium income is recognised evenly over the policy’s duration rather than as a lump sum upfront.The retail health segment grew the fastest in September 2025, driven by GST rate cuts, policy renewals and improved penetration amid rising medical inflation. However, growth moderated to 7.3 per cent, down from 18.2 per cent in the same period last year. Group health insurance growth moderated to 7.9 per cent in YTDFY26, down from the 11.5 per cent pace seen in YTDFY25. “The deceleration is partly linked to the 1/n rule and further exacerbated by rising medical inflation, which has pushed premiums higher and weighed on affordability,” CareEdge said in a report.Entry of SAHIsStandalone health insurers (SAHIs) remain concentrated in the retail segment, whereas general insurers continue to dominate the group business. With new SAHIs set to enter the market, competitive intensity is expected to rise over the medium term, CareEdge said in the report.The recent reduction in GST on health insurance has lowered the overall cost for policyholders, making products more affordable and supporting stronger demand. Insurers are likely experiencing higher new business premiums and improved penetration, particularly in retail segments. The reduced tax burden also helps enhance customer retention, as renewal premiums have become relatively more economical, contributing to sustained growth in the health insurance segment.Story continues below this adSpecialised insurers witnessed a significant rebound in September 2025, with premiums surging 261.5 per cent year-on-year, a strong reversal from the steep 61.8 per cent contraction recorded in September 2024. This increase was primarily driven by a low base effect, coupled with higher renewals and increased uptake in credit guarantee insurance, it said.On a YTD basis, the segment has returned to positive growth, rising by 66.4 per cent compared to a 27.9 per cent decline in the corresponding period of FY25, reflecting renewed momentum and business recovery across specialised lines.SAHIs saw a marked slowdown in growth, with premiums rising just 3.1 per cent y-o-y in September 2025, significantly lower than the 25.9 per cent growth recorded in the same month last year. This moderation is likely attributable to higher premiums, impacting affordability and new business inflows.