The non-life insurance coverage business, together with common, standalone well being and specialised PSU insurance coverage firms, have witnessed a 13.1 per cent progress in premiums to Rs 2.63 trillion within the first 11 months of FY24, up from Rs 2.32 trillion within the year-ago interval. The expansion was backed by the rise in well being and motor insurance coverage premiums.
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The 2 segments of the business collectively account for greater than 60 per cent of the general non-life insurance coverage enterprise. For the reason that pandemic, the demand for medical insurance insurance policies has been on the rise resulting from elevated consciousness amongst individuals of being underinsured and rising medical inflation. In the meantime, rising automobile gross sales help the expansion in motor insurance coverage. In keeping with the info, retail well being and group well being premiums have elevated by 19.22 per cent and 20.56 per cent, respectively thus far in FY24.
“The business gross home premium revenue (GDPI) progress in 11MFY2024 has been supported by the sturdy progress within the well being section pushed by a surge in demand for well being insurance policies following the Covid-19 pandemic. GDPI progress for the motor section stays sturdy with comparatively greater progress within the motor – OD section as in comparison with the motor – TP section doubtless resulting from no hikes within the motor -TP charges,” mentioned Neha Parikh, Vice President, Sector Head-Monetary Sector Scores, ICRA. OD is own-damage and TP is third celebration.
Nevertheless, resulting from greater base, the expansion in medical insurance insurance policies have moderated within the interval underneath overview to twenty per cent from practically 24 per cent within the corresponding yr in the past interval. Equally, the motor section has additionally seen a moderation in progress fee from 16 per cent in April – February interval of FY23 to just about 14 per cent thus far on this monetary yr.
Amongst different segments, the premium progress in hearth, marine, and crop insurance coverage has seen a tepid efficiency. In keeping with the info, hearth insurance coverage premiums have elevated by 8.16 per cent thus far within the present FY, whereas marine insurance coverage premiums are down by 1 per cent throughout this era. Equally, crop insurance coverage premium has additionally declined by 5 per cent.
Parikh added that ICRA expects incremental GDPI of Rs 42,500 crore – Rs 44,000 crore for the business in FY25 to achieve an total GDPI of Rs 3.22-3.24 trillion, translating into an estimated progress of 15-16 per cent Y-o-Y from Rs 2.79 – 2.80 trillion estimated for FY24. The determine for FY23 was Rs 2.41 trillion. Personal insurers are anticipated to proceed to realize market share with a 69 per cent share in GDPI in FY25, up from 66 per cent in FY23 and 50 per cent in FY17, she mentioned.
When it comes to the market share, the general public sector common insurers stood at 31.35 per cent of the general common insurance coverage business in February 2024 as towards 32.55 per cent in February 2023. The non-public insurers, however, witnessed a rise in market share to 53.79 per cent within the reported month as in comparison with 51.39 per cent within the yr in the past interval.
First Printed: Mar 15 2024 | 12:28 AM IST
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