Non-life insurers' premium up 19.46% at Rs 20,000 crore in July

Non-life insurers, which include general, standalone, and specialised public-sector, have recorded 19.46-per cent year-on-year (YoY) growth in premiums in July.
 
In July, non-life insurers — 33 in total — earned premiums to the tune of Rs 20,171.15 crore, against Rs 16,885 crore in the same month last year.
 
On a year-to-date (YTD) basis (April-July), insurers saw their premiums go up 15.49 per cent to Rs 64,607.25 crore, against Rs 55,939.85 crore in the same period last year.
 

General insurers, who cover risks ema­nating from a whole host of segments, such as motor, health, crop, fire, marine, and others, reported 17.61-per cent YoY growth in premiums in the reporting month to Rs 16,469.20 crore versus Rs 14,003.81 crore. Further, on a YTD basis, premiums earned by them surged 12.9 per cent to Rs 56,280.58 crore. On the other hand, standalone health insurers have reported 27.49-per cent YoY growth in premiums in July over the same period last year, driven by robust demand for health products during the pandemic.

 
In the first quarter (Q1) of 2021-22 (FY22), health insurance premiums grew 3-per cent YoY to Rs 17,497 crore, with retail health growing at 33 per cent, and group health at 23 per cent.
 
On a YTD basis, standalone health insurers saw their premium pool rise 46.11 per cent to Rs 5,975.52, against Rs 4,089.81 crore in the same period last year.
 
Notwithstanding the handsome growth in the health segment, both general and standalone health insurers have seen their loss ratios get impacted due to the abnormal rise in Covid-related claims in Q1FY22 because of the second wave of the pandemic. Insurers received over 1 million Covid-related claims in Q1FY22, higher than in 2020-21 (FY21), indicating the severity of the second wave.

 
According to the General Insurance Council data, general and standalone health insurers have received 1.22 million Covid-related claims so far in FY22 and have settled 944,573 of those worth Rs 9,178 crore. In comparison, they had received 986,366 Covid claims in FY21 and settled 849,034. In FY21, they paid out claims to the tune of Rs 7,833 crore, taking the total payout in two years to Rs 17,011 crore. The specialised public-sector insurers also saw robust 29-per cent YoY growth in premiums in July to Rs 1,949 crore. And, on a YTD basis, their premiums were up 17.19 per cent to Rs 2,351.15 crore.

 
Experts believe non-life premiums are expected to be driven by continued uptick in the health segment.
 
Further, enhanced digital solutions, complemented by offline offerings, are expected to drive premium growth of non-life companies. Meanwhile, the loss ratio could go up, given the resurgence in Covid claims, thereby impacting financials.