Gross premium income of general insurers rises 38%

The gross premium income of the general insurance industry increased 38.4 per cent in January as compared to the year before.

According to data collated by insurers, the industry collected Rs 4,149 crore by writing new policies in January, as against Rs 2,998 crore last year. As compared to December 2010, the gross premium income increased 17.4 per cent.

The private players outshone their public sector peers, registering growth of 47.58 per cent to Rs 1,957 crore, whereas the public sector companies collected a premium of Rs 2,192 crore — a growth rate of 31.1 per cent.

For the ten months ended January, the industry recorded growth of 24.1 per cent in gross premium income to Rs 34,962 crore, as compared with Rs 28,165 crore in the corresponding period last year.

“Compared to the life insurance industry where growth in new premium income declined after September, growth for the general insurance sector over the last six months has been steady, with the industry recording average growth of 22-23 per cent every month,” said an official at a state-owned general insurance company.

The new business premium income of the life insurance industry declined 20 per cent in December to Rs 9,709 crore, as against Rs 12,201 crore in the same period last year.

For nine months ended December, the life insurance companies recorded growth of 28.33 per cent in new business premium income — most of which happened in the first five-six months. Sales have been hit after new norms were introduced in September.