The total premium of non-life insurance companies saw a jump of 334 per cent to Rs. 1.28 lakh crore in 2016-17 as against a premium of Rs. 29, 498 crore in 2007-08, according to the data provided in the General Life Insurance Council Year book 2016-17.
“A CAGR of 17.7% has been recorded by Non-Life Insurance Industry in the period 2007-08 to 2016-17. The growth rate of non- life insurance industry which had slowed down during 2012-15 has now turned around due to pick up in economic activity”, the year book stated.
Experts credit this growth to increase in demand of health insurance products, comprehensive motor insurance policies and crop insurance business.
Sanjay Datta, Chief- Underwriting& Claims, ICICI Lombard Insurance Company Limited, said, “New segments like property and liability insurance have been introduced to the non-life insurance space. Additionally, the growth in economy has led to the increase in total AUM of the general insurance segment.”
The insurance penetration of motor and health segments have increased due to awareness. Sanjay attributed the growth to increase in number of distribution channels. “Distribution has also started reach out to more people as the number of intermediaries like agents and brokers, online/offline channels have also substantially increased,” said Sanjay.
As on October 2017, the total business premium of non-life insurers stood at Rs. 86,097 crore.