You are here: Home » Finance » News » Others
Business Standard

Non-life insurers' premium income rise 11.35% YoY in May to Rs 12,316 cr

Month-on-month, premium income declines 28.84% from April levels

Topics
Non-life insurers | Non-life insurance premium | income

BS Reporter  |  Mumbai 

insurance
Illustration: Ajay Mohanty

have reported an 11.35 per cent rise in gross direct premium in May, over the same period last year, which was marred by a nationwide lockdown to curb the spread of the coronavirus. Insurers collected premiums of Rs 12,316.5 crore this May, compared to Rs 11,061.02 crore in May 2020.

But, sequentially (month-on-month) the premium collected by in May dropped 28.84 per cent compared to April, indicating a disruption their business due to localised lockdowns imposed by authorities due to the second wave of the pandemic. In April, the insurers had amassed premiums of Rs 17,309.54 crore.

Among non-life insurers, premium of general insurers rose 7.17 per cent YoY to Rs 10,822.7 crore in May but contracted by 32.13 per cent month-on-month.

There are 25 general insurers in the country, which includes four state-owned insurers and 21 private insurers.

Standalone health insurers, on the other hand, reported a 66 per cent YoY jump in premiums to Rs 1,406.44 crore in May. Compared to last month, their premium has risn almost 12 per cent.

In FY22 so far, non-life insurers’ premium income has gone up by 17.5 per cent YoY to Rs 29, 626 crore while general insurers’ premium income is up 14 per cent YoY. Standalone health insurers, on the other hand, have seen a stellar 61 per cent YoY growth in premiums to Rs 2,665.87 crore.

Rating agency ICRA in its note has said, the general insurance industry is expected to grow by 7-9 per cent in terms of premiums in FY22, supported by growth in the health segment and an uptick in the motor segment. PSU insurers are expected to report marginal GDPI growth of 4-5 per cent in FY22 as most of the public insurers remain stretched on their solvency profile given reported losses, the report further said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, June 09 2021. 19:36 IST
RECOMMENDED FOR YOU
.