Gross direct premiums underwritten by non-life insurers up 16%

The month-on-month increase for May stood at 16% for entire non-life insurance industry

Non-life insurers have seen a substantial rise in gross direct premiums underwritten in the first two months of FY18 by almost 16 per cent from the corresponding period in FY17. While private players in the market had a 24.52 per cent increase in direct premiums underwritten, government owned insurers saw an 8.52 per cent rise.

Gross premiums underwritten means the insurers guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such a guarantee. The month-on-month (m-o-m) increase for May stood at 16 per cent for the entire non-life insurance industry. While the private insurers saw a 20 per cent rise in the premiums underwritten, the government-owned insurers saw a 12 per cent rise.

Standalone private health insurers, which account for only 4.26 per cent of the market, had a healthy rise of 43 per cent in the gross premium underwritten in the first two months of FY18 from the year-ago period. Specialised public sector insurers, comprising ECGC and AIC, however, saw a steep decline of 29 per cent in the premiums underwritten for the period in FY18.