The gross direct premium underwritten by non-life insurance coverage corporations declined 10.7% to Rs 15,784.66 crore in March in comparison with Rs 17,672.89 crore within the corresponding month final yr, largely because of the lockdown throughout India to forestall unfold of COVID-19.
Nonetheless, for the final fiscal the premiums stood at Rs 1.89 lakh crore in comparison with Rs 1.69 lakh crore seen in FY19, a development of 11.7%, reveals information from Insurance coverage Regulatory and Growth Authority of India (Irdai). However with Indian development more likely to decelerate on this monetary yr, insurers imagine that it will likely be difficult occasions for the overall insurance coverage trade, particularly within the motor insurance coverage phase.
At the moment motor insurance coverage has a 38-40% of market share of latest premiums in non-life trade and weak auto gross sales quantity would additional affect motor insurance coverage enterprise within the months to return. Mahesh Balasubramanian, MD and CEO at Kotak Basic Insurance coverage says, “This yr appears extraordinarily difficult specifically on the motor aspect of the enterprise. Consumption and client spend will go down this yr and so enterprise that are largely pushed by client spending or client consumption will most likely decelerate.” He additionally added that their focus will stay on medical insurance and private accident (PA) on this monetary yr.
Among the many 25 common insurer gamers like SBI Basic Insurance coverage, Bajaj Allianz Basic Insurance coverage and Bharti AXA Basic Insurance coverage amongst different noticed robust development in final monetary yr. Nonetheless, ICICI Lombard Basic Insurance coverage and Tata AIG Basic Insurance coverage noticed unfavourable development of their gross direct premiums in final monetary yr reveals the information from Irdai. The New India Assurance continued to stay a market chief with market share of 14.11% within the final monetary yr.
Insurance coverage gamers are assured that enterprise in medical insurance will pick-up going ahead as buyers will perceive the significance of medical insurance after latest crises. After motor insurance coverage, medical insurance has a market share of round 26-28% within the non-life insurance coverage trade.
“The insurance coverage enterprise is anticipated to witness muted development within the first quarter of FY21 because of the prolonged lockdown, nonetheless, the phase might witness an elevated curiosity within the well being and insurance policies which defend enterprise within the occasions of shutdown or particular perils equivalent to pandemics,” stated CARE Rankings in its report.
The standalone personal well being insurers noticed larger development at 26.92% and premiums at Rs 14,409.98 crore in final fiscal. Even specialised public sector insurers like ECGC and AIC noticed development of 30.24%.