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Insurance General insurers see 18% growth in new business premium last fiscal

General insurers see 18% growth in new business premium last fiscal

But the overall industry growth has declined.
Team Cafemutual Apr 11, 2018

FY2017-18 ended on a positive note for the non-life insurance industry. IRDAI data shows that the general insurance companies have recorded 17.5% growth in new business premium, i.e. from Rs.1.28 lakh crore in FY2016-17 to Rs.1.51 lakh crore in FY2017-18.

Among general insurers, New India Insurance has topped the chart by registering 15% growth with a collection of Rs.22,695 crore in absolute terms. The company accounts for 15% market share, the highest in the non-life industry.

Other non-life insurers that witnessed healthy growth are National, United India and ICICI Lombard.

In percentage terms, Kotak Mahindra recorded a massive growth of 125% due to low base effect. The gross new business premium of the company was Rs.185 crore as on March 2018.

Stand-alone health insurers collected the new business premium of Rs.8,000 crore, indicating a growth of 6%.

However, the overall growth of the industry has declined as compared to the preceding fiscal. The general insurance industry had witnessed 32% growth in FY 2016-17 by adding over Rs.30,000 crore to its new business premium kitty. In FY 2017-18, the industry added an additional Rs.23,000 crore.

Gurpal Dhingra, Director, Prudent Insurance Broker attributed this to lack of awareness among people. He said, “This is due to low penetration of general insurance and poor renewal rates. Many corporates and individuals look at insurance as expenses and not as risk transfer. This mindset has to change.”

                                                                                                                                     

 

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