Robust Growth in Premiums
India’s non-life insurance industry demonstrated impressive growth in FY 2023-24, with total direct premiums reaching ₹2.90 lakh crore, marking a 12.76% increase from the previous fiscal year. This surge underscores the sector’s resilience and adaptability amid changing economic dynamics.
- Public Sector Performance: Contribution from public sector general insurers grew by 8.88%, rising to ₹90,252 crore from ₹82,891 crore in FY 2022-23.
- Private Sector Gains: The private sector, including standalone health insurers, achieved a remarkable 19% growth, with underwritten premiums climbing to ₹1.88 lakh crore from ₹1.58 lakh crore in FY 2022-23.
Profitability Surge
The non-life insurance sector achieved an aggregate profit of ₹10,119 crore, a significant turnaround from a net loss of ₹2,566 crore in the previous year. This notable improvement reflects better risk management, operational efficiency, and robust growth across public and private insurers.
Claims Ratio Insights
The incurred claims ratio for the industry slightly improved to 82.52% in FY 2023-24, indicating enhanced claims handling and financial prudence.
- Public Sector Challenges: Public sector insurers reported a higher claims ratio of 97.23%, highlighting persistent challenges in claims management and profitability.
- Private Sector Strength: Private general insurers maintained a healthier claims ratio of 76.49%, showcasing better risk assessment and profitability.
Sector Resilience Amid Economic Shifts
The growth in premiums, coupled with improved profitability, demonstrates the sector’s ability to navigate economic fluctuations effectively. The steady improvement in claims ratios and the private sector’s strong performance further underscore the industry’s resilience.
Conclusion
The non-life insurance industry in India has emerged stronger, with robust growth in premiums and profitability. As the sector continues to adapt to evolving economic conditions and customer needs, it is poised for sustained growth and greater financial stability in the years to come.
