After poor show in Sept, non-life insurers’ premiums up 15.5% YoY in Oct

The insurance regulator is currently looking into the proposal, an official said

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The non-life insurance industry bounced back in October, as premiums rose 15.51 percent year-on-year (y-o-y) and marked a turnaround from a disappointing number in September.

According to data released by the General Insurance Council (GIC), the industry earned premiums to the tune of Rs 20,423.38 crore in October, up 15.51 percent from the year-ago period.

General insurers, which operate multiple lines of business, reported a 17.5-year annual growth of Rs 18,390.86 crore, driven by a strong performance by state-owned firms. Independent health insurers reported a 20 percent annual increase in premiums over the same period.

Four state insurers saw a 22.46 percent annual increase in premiums. Private sector insurers’ premiums rose by 14.5 percent annually. Among leading private sector insurers, ICICI Lombard earned premiums to the tune of Rs 2,047.12 crore, up 22.19 per cent YoY; General Bajaj Allianz’s premiums rose 24.54 percent YoY to Rs 1,230 crore; and HDFC Ergo premiums rose 5 percent YoY to Rs 1,298.19 crore.

In FY23, non-life insurers reported a premium growth of 15 percent YoY to Rs 1.45 trillion, driven by robust growth witnessed by private sector general insurers and independent health insurers. After growing over 20 percent in Q1 FY23, the non-life insurance industry saw a decline in growth in Q2 FY23, as it reported only 10 percent growth during the period. In the first half of 2023, the industry grew by 15.3 percent, compared to 12.6 percent in the same period last year. This growth was driven by health insurance (especially in the group segment), motor and crop insurance.

Motor insurance premiums, supported by vehicle sales and the repricing of third-party premiums, offset the normalization of growth. Health insurance premiums have moderated in the first half of FY23, after witnessing high levels of growth during the pandemic.

Despite the moderate increase, experts believe that demand for health insurance will continue, although not at the level witnessed during the pandemic. Further, the long-term growth of motor insurance will be driven by the growth in the automobile industry.

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