Retail health continues to shine as motor and crop insurance slide

Fire and health insurance segments have been driving the non-life insurance business in the current financial year. 

Till January, the health insurance segment has grown 14.59 per cent to Rs 48,501 crore, capturing 29.5 per cent market of the non-life business, up almost 300 basis points from last year. This is mainly due to a surge in demand for health products since the onset of the pandemic.

In the health segment, it is retail health that has driven this surge with close to 30 per cent growth till January, thanks to Covid-specific products launched this year to provide protection against the virus. Group health grew 10 per cent, but other components of health business — government schemes and overseas medical — saw contraction.

Motor, which continues to be the largest business of non-life insurers with 33.42 per cent market share, shrank 4.57 per cent to Rs 54,908.5 crore from last year, down 265 basis points. However, it is showing signs of revival each month. Similarly, the crop insurance business of non-life insurers contracted 9.5 per cent to Rs 25,998 crore till January.