Indian General Insurance Sector Back on the Growth Path in October as four insurers log three-digit growth
The Indian general insurance sector logged 27.53% gross direct premium growth last month, with four players registering three-digit growth compared to the previous year’s corresponding period.
According to the industry lobby body General Insurance Council, the sector-including the two specialised insurers- closed last month with a premium income of Rs.30,378.01 crore up from Rs. 23,821.05 crore earned in October 2023.
With this, the industry is back on the growth path after logging a negative growth of 6.53% in September this year over the same month last year.
The four general insurers that logged three-digit premium growth in October 2024 are National Insurance Company (premium Rs.2,488.12 crore, growth 156.70%), Bajaj Allianz General Insurance Company (Rs.3,859.72 crore, 109.86%), Kshema General Insurance (Rs.272.86 crore, 278.29%), and Agriculture Insurance Company of India (Rs.1,761.03 crore, 200.30%).
Within the sector, the four standalone health insurers earned Rs.3,119.06 crore in premium income last month, up from Rs.2,494.54 crore earned in October 2023.
The two specialized general insurers – ECGC Ltd and Agriculture Insurance Company – had earned Rs.1,862.27 crore last month as against Rs.684.97 crore earned during the previous year’s corresponding month.
The general insurers who logged negative growth last month were HDFC Ergo General Insurance, Navi General Insurance, and Royal Sundaram General Insurance.
For the period April-October 2024, the industry earned a total premium of Rs. 1,84,272.08 crore up from Rs. 1,67,620.26 earned during the previous year’s corresponding period.
Listed and the government-owned The New India Assurance leads the industry in terms of market share with 12.26% this fiscal and is followed by ICICI Lombard General Insurance with 9.08% and Bajaj Allianz General with 7.82%.
Meanwhile, credit rating agency CARE Ratings in a recent report said the non-life insurance sector to grow between 13-15% in the medium term.
“CareEdge Ratings estimates that the Indian non-life insurance market will grow at a rate of approximately 13-15% in the medium term. The overall business growth would be supported by macroeconomic factors, a favourable regulatory environment, and the Bima Trinity. Additionally, reports of composite licenses and M&A could alter sectoral dynamics. The overall outlook for the non-life insurance sector remains stable in the medium term. However, intensified competition, and an uncertain international geopolitical environment, could impact the non-life insurance sector,” said Sanjay Agarwal, Senior Director, CareEdge Ratings.
