Commercial fire insurance premiums ease to 13.6% drop in September 2026

In September, commercial fire insurance premiums declined 13.6% year-on-year, a marked moderation from the 24.8% drop recorded in August, indicating that insurers are easing the steep discounts applied previously. Analysts say the slowdown coincides with significant catastrophe losses, notably the flood events in Gujarat that have pressured renewal pricing. The sector recorded fire insurance premiums of ₹1,494.6 crore for the month, and a 26.6% year-on-year decline to ₹12,768.73 crore over the first half of FY27.

The share of fire insurance in total premiums fell to 7.1% from 10.5% in the comparable period of FY26. Earlier, the industry faced near-₹5,000 crore losses from Gujarat floods, prompting an expected 25-30% hardening of fire and property premiums. Regulators have warned against excessive discounting that could undermine insurers’ financial stability.