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Growth path: Premium of non-life insurance companies grew 12.78% in FY24

Private general insurers gain market share

Life Insurance, Insurance

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Aathira Varier Mumbai

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Non-life insurers posted a 12.78 per cent year-on-year (Y-o-Y) growth in gross direct premium underwritten in 2023-24 (FY24), reaching Rs 2.89 trillion, compared to 16.4 per cent in the previous financial year.

The premium fell short of touching the Rs 3 trillion mark amid a slowdown in the growth rate of health and motor insurance, along with weak growth in the crop insurance segment.

According to data released by the General Insurance Council, premiums of general insurers grew by 14.24 per cent Y-o-Y to Rs 2.45 trillion in FY24.

Public sector general insurers clocked an 8.99 per cent growth in premium to Rs 90,344.49 crore, whereas their private sector counterparts witnessed a 17.53 per cent increase to Rs 1.55 trillion.
 

“It’s been an interesting year, and the industry has largely done very well in terms of covering more citizens,” said Tapan Singhel, chairman of GIC and managing director and chief executive officer of Bajaj Allianz General Insurance.

“The regulator has been proactive in ensuring the right growth trajectory for the industry while being customer-focused. The industry has responded well and embarked on the journey towards greater collaboration to increase customer convenience and trust,” Singhel added.

Among companies, the industry leader, The New India Assurance Company, saw a 7.4 per cent Y-o-Y growth in premium to Rs 37,035.19 crore.

The premium of leading private sector players like ICICI Lombard General Insurance grew by 17.84 per cent Y-o-Y to Rs 24,776.11 crore, while Bajaj Allianz General Insurance’s premium increased by 33.49 per cent to Rs 20,472.68 crore in February.

Among other major insurers, HDFC Ergo General Insurance’s premium increased by 11.61 per cent to Rs 18,567.56 crore, whereas United India Insurance Company’s premium surged 12.51 per cent to Rs 19,851.71 crore and The Oriental Insurance’s premium rose 17.1 per cent Y-o-Y to Rs 18,285.82 crore in FY24.

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In March 2024, general insurance companies’ gross direct premium grew by 9.64 per cent Y-o-Y to Rs 21,422.06 crore.

In terms of market share, public sector general insurers held 31.18 per cent of the overall general insurance industry in FY24, down from 32.27 per cent in FY23.

Private insurers, on the other hand, witnessed an increase in market share to 53.52 per cent in the reported financial year compared to 51.36 per cent in the year-ago period.

In a recent report, CareEdge Ratings noted that overall business growth in the industry is being aided by a favourable regulatory environment, stabilisation of loss ratios, and a focus on containing expenses. Strengthening distribution networks and higher investment will also contribute to the sector’s growth.

The report further added that competition is likely to increase as new companies have commenced operations while others continue to be in line to enter the segment.

So far in 2024, the insurance regulator has approved two new standalone health insurers or SAHIs — Narayana Health Insurance and Galaxy Health & Allied Insurance.

In FY24, the gross direct premium of the five SAHIs increased 26.19 per cent to Rs 33,115.95 crore from Rs 26,243.85 crore in the year-ago period.

Among SAHIs, the segment leader, Star Health & Allied Insurance Company, posted a 17.75 per cent Y-o-Y growth in premium to Rs 15,251.11 crore in FY24.

Singhel said, “The new guidelines and regulations have laid down the road map for the industry in terms of not just expanding its footprint but also ensuring financial inclusion to the last mile. The new year is when the rubber hits the road, and we will see a lot of positive movement in the right direction of insurance for all by 2047.”

Meanwhile, in FY24, the gross direct premium of specialised insurers was nearly 29 per cent down from last year. Agriculture Insurance Company of India’s premium was down 32.15 per cent over the previous year to Rs 9,919.66 crore, whereas ECGC posted a 6.12 per cent Y-o-Y growth in premium to Rs 1,270.76 crore during the time period.

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First Published: Apr 08 2024 | 9:49 PM IST

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