Despite Economic Slowdown, Both Life and Non-Life Insurance Segments Witness Premium Growth
Updated On Nov 11, 2020
Despite the news of economy slowing down, both life and non-life insurance segments have recorded a considerable growth in premiums at least until the six-month period ended 30th September of 2019-2020. But the insurers are still unsure of the future prospects of the insurance sector in the upcoming six months.
It is the auto sales in particular that contribute the maximum amount of premium in the general insurance sector in India. Even after the slowdown, the auto insurance sector has continued to maintain a fair growth rate of 16% in H1 (first half) in the current financial year.
As per the Life Insurance Council, the total premium for life insurance of all 24 insurers increased to 35.11% during April-September of the current fiscal to Rs. 125,758 Crore.
For September, the general insurance industry has seen a spurt in the premium by almost 40%, in which the public sector insurers reported a gain of 43% and private sector up 37% during September.
ICICI Lombard is the only insurance company to lose premium in the month of September. As far as other general insurance companies are concerned, Reliance General grew premium by an average of 24.5%, SBI General reported a growth of 50.5% and Bajaj Allianz General Insurance Company grew premium by 20% in H12019-20
Even the public sector insurance companies witnessed a strong comeback in the month of September. New India Assurance recorded a growth of 12% during (H1) 2019-2020. Also, the three merging companies, National Insurance, Oriental Insurance and United India Insurance, despite lacking solvency, were able to garner good growth.
Atul Sahai, CMD, New India Assurance reports that they have clear plans in place for growth. He said that due to the reported slowdown of motor insurance, they are now concentrating on other segments like aviation, marine, hull, property, engineering, etc. He also adds on to state that in health portfolio by the fiscal end the claim experience will be brought down to double-digit figure.
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