The non-life insurance industry reported a 21 per cent year-on-year (YoY) growth in premiums in June, driven by healthy growth in premiums of private sector general insurers and standalone health insurers.
Further, in April – June quarter (Q1FY23), the industry netted premiums to the tune of Rs 54,492 crore, up 23 per cent YoY over the corresponding period last year.
In June, the gross direct premiums underwritten by the non-life insurers, which include general insurers, standalone health insurers, and specialised insurers, were to the tune of Rs 17,810.51 crore. General insurers, who operate in different lines of business such as motor, health, crop, etc., saw their premiums rise 19.93 per cent in the month to Rs 15,638.72 crore. Similarly, the five standalone health insurers saw their premiums rise by 32.85 per cent to Rs 2,004.77 crore.
Among large private sector insurers, ICICI Lombard general insurance, the largest private sector general insurer, reported a 54 per cent growth in premiums in June, while Bajaj Allianz general insurance posted 13 per cent growth in the same period. Similarly, HDFC Ergo and Reliance general insurance saw their premiums rise by 24.5 per cent and 21 per cent, respectively, while Tata AIG general insurance reported a 35.84 per cent growth in the same period.
Among state-owned general insurers, Oriental Insurance and United India Insurance reported double-digit growth in premiums in June, while National Insurance reported a de-growth during the same period. New India Assurance, the largest general insurer, reported a flat increase during the same time.
In the June quarter, the general insurers posted 22.73 per cent growth in their premiums over the same period last year, while the standalone health insurers reported a 28.63 per cent growth.
Segment-wise trends till May suggest that motor insurance is seeing strong growth, albeit on a low base, with a pick-up in auto sales. Also, group health is seeing more robust demand in health insurance than retail health, resulting in multiline companies scoring over the standalone health insurers. As of May, health premiums grew 24 per cent YoY, driven by 31 per cent growth in group health, while retail health grew 9.6 per cent on a large base.