General insurance sector growth 3-year low at 9.3% in FY15

Industry grew by 13% in FY 2014 to Rs 77,540 crore

Subdued new premium growth due to poor auto sales and lack of new projects have dented the general insurance industry's business expansion in FY 2015 to a three-year low of 9.3% at Rs 84,715 crore, according to provisional data.

The industry had grown by 13% in FY 2014 to Rs 77,540 crore, according to the General Insurance Council data.

"Single-digit growth for the industry was due to slump in auto and non-execution of infra projects during the year gone-by," General Insurance Council Secretary General R Chandrasekaran said.

As per the provisional figures compiled by the council, four public sector general insurers are likely to have grown to Rs 42,515 crore in FY 2015, which is a 10.1% growth over the previous fiscal.

Twenty four private sector players continued to lag behind the public sector ones with a cumulative premium collection of Rs 35,150 crore, which is just 9.9% growth over FY 2014.

Chandrasekaran said lower topline growth would have had its impact on the bottom line too as the year was marked by two major natural calamities--the Hudhud cyclone that hit the Andhra cost earlier in the year and killer floods in the Kashmir Valley.

The health insurance sector, dominated by half a dozen players, however, is likely to have grown at 30% to Rs 2,946 crore in FY 2015.

But if one excludes the specialised areas like agriculture and Export Credit Guarantee Corporation, the industry is likely to have grown by 10.6% for the fiscal.

In March alone, the industry grew by 13.7% on an annual basis," said Chandrasekaran.