Non-life insurance companies witnessed a notable 12.78% year-on-year (Y-o-Y) increase in gross direct premiums underwritten during the fiscal year 2023-24 (FY24), reaching Rs 2.89 trillion. This growth, however, fell short of breaching the Rs 3 trillion mark, attributed to a slowdown in the expansion rates of health and motor insurance, alongside tepid growth in the crop insurance sector.
According to data released by the General Insurance Council, general insurers saw premiums surge by 14.24% Y-o-Y to Rs 2.45 trillion in FY24. Within this segment, public sector general insurers experienced an 8.99% growth in premiums to Rs 90,344.49 crore, while their private sector counterparts witnessed a robust 17.53% increase to Rs 1.55 trillion.
Tapan Singhel, Chairman of GIC and Managing Director & CEO of Bajaj Allianz General Insurance, remarked on the industry’s performance, stating, “It’s been an interesting year, and the industry has largely done very well in terms of covering more citizens.” Singhel commended the proactive role of regulators in steering the industry toward sustainable growth and customer-centricity, emphasizing the sector’s commitment to enhancing collaboration for improved customer satisfaction and trust.
Among the key players, The New India Assurance Company, the industry leader, saw a 7.4% Y-o-Y growth in premiums to Rs 37,035.19 crore. Meanwhile, leading private sector insurers such as ICICI Lombard General Insurance witnessed a 17.84% Y-o-Y increase to Rs 24,776.11 crore, and Bajaj Allianz General Insurance recorded a substantial 33.49% surge to Rs 20,472.68 crore in February.
Other major insurers like HDFC Ergo General Insurance observed an 11.61% rise to Rs 18,567.56 crore, United India Insurance Company saw a 12.51% surge to Rs 19,851.71 crore, and The Oriental Insurance’s premiums increased by 17.1% Y-o-Y to Rs 18,285.82 crore in FY24.
In March 2024, general insurance companies registered a 9.64% Y-o-Y growth in gross direct premiums, totaling Rs 21,422.06 crore. Market dynamics revealed a slight decline in market share for public sector general insurers, standing at 31.18% in FY24 compared to 32.27% in FY23. Conversely, private insurers observed an uptick in market share, rising to 53.52% in the reported fiscal year from 51.36% in the previous year.
A recent report by CareEdge Ratings underscored the industry’s growth drivers, highlighting a favorable regulatory environment, stabilized loss ratios, and cost-containment efforts. Strengthening distribution networks and increased investments were identified as further contributors to sectoral growth. The report also anticipated heightened competition with new entrants and existing players vying for market share.
In FY24, the Insurance Regulatory and Development Authority of India (IRDAI) approved two new standalone health insurers (SAHIs) – Narayana Health Insurance and Galaxy Health & Allied Insurance. The combined gross direct premium of the five SAHIs surged by 26.19% to Rs 33,115.95 crore from Rs 26,243.85 crore in the preceding year. Among SAHIs, Star Health & Allied Insurance Company, the segment leader, recorded a 17.75% Y-o-Y growth in premiums to Rs 15,251.11 crore in FY24.
Singhel emphasized the industry’s commitment to extending financial inclusion and expanding its reach to underserved segments, expressing optimism about the sector’s trajectory towards universal insurance coverage by 2047.
However, in FY24, specialized insurers experienced a decline in gross direct premiums by nearly 29% compared to the previous year. Agriculture Insurance Company of India’s premiums fell by 32.15% to Rs 9,919.66 crore, while ECGC posted a modest 6.12% Y-o-Y growth to Rs 1,270.76 crore during the same period.
