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IRDAI data shows that the Indian insurance business has become a Rs.55 lakh crore industry as on March 2022. The AUM of insurance industry, which has 55 insurance companies, grew from Rs.49.13 lakh crore in March 2021 to Rs.54.36 lakh crore in March 2022, a growth of over 10% in just a year.
An analysis of data shows that while almost Rs.50 lakh crore has come from life insurance companies, non-life insurers contributed Rs.5 lakh crore to the AUM kitty.
The growth has come due to increase in new business premium. In FY 2021-22, the insurance industry saw 10% increase in new business premium collection to reach Rs.9.17 lakh crore in FY 2021-22 from Rs.8.30 lakh crore in FY 2020-21.
In terms of claim settlement, the insurance industry paid total claim of 6.43 lakh crore in FY 2021-22 compared to Rs.5.10 lakh crore in the corresponding period preceding year.
Meanwhile, even as AUM increases, the net profit of insurance companies declined substantially. The profit after taxation of insurance industry declined to Rs.5000 crore in FY 201-22 from 12,500 crore in FY 2020-21.
The decline is due to loss in general insurance business. General insurers booked loss of Rs.2900 crore last financial year as against net profit of Rs.3900 crore in FY 2020-21.
Overall, the industry sold 29.50 crore policies in FY 2021-22 as against 27.50 crore policies in FY 2020-21.
