Market participants are of the opinion that in the last few months, premiums in health insurance have increased for the whole industry.
In September this year, the non-life insurance industry saw gross direct premiums of Rs 23,056.80 crore against Rs 24,121.56 crore in September last year, clocking a fall of 4.41%.
Gross direct premium underwritten by the non-life insurance industry saw growth in the first half of the current financial year. However, the premiums came down 4.41% in September as motor insurance and crop insurance businesses remained under pressure. Market participants are of the opinion that in the last few months, premiums in health insurance have increased for the whole industry.
Data from the Insurance Regulatory and Development Authority of India (IRDAI) revealed that general insurance companies’ registered premiums grew 1.57% to Rs 97,025.04 crore over April and September this year, compared to Rs 95,528.40 crore clocked in the previous financial year. In September this year, the non-life insurance industry saw gross direct premiums of Rs 23,056.80 crore against Rs 24,121.56 crore in September last year, clocking a fall of 4.41%.
Mahesh Balasubramanian, MD and CEO of Kotak General Insurance, said, “Commercial lines of business-like property, engineering and fire have grown because of price rise and overall increase in premiums. Even health premiums have seen a good surge as people are now realising the importance of having a health insurance due to the ongoing pandemic.” He also added that motor insurance had de-grown in the past few months and new vehicle sales had been depressed.
The standalone health insurance companies saw gross premiums at Rs 7,810.97 crore in the first half of the current fiscal year compared to Rs 6,099.50 crore in the last financial year, registering 28.06% growth. Currently, health and motor insurances have market shares of around 31% and 30%, respectively, in new business premiums. Market participants said motor insurance numbers should look positive in the next two months due to the festive demand.
Industry players also said the fall in premiums in September could be related to crop insurance. According Care Ratings, “In September 2019, the premiums had increased primarily due to higher crop insurance premiums. In the current year, crop insurance premiums till August 2020 have been higher, but anecdotal data suggests that as the crop insurance scheme has been made optional, farmer enrolment has reduced. Another reason for the drop in farmer enrolment is reportedly the delay in pay-outs.”
This article was originally posted here.
