Indian general insurers wary of growth outlook

The sector is still plagued by negative consumer sentiment, and there are concerns for the 2022 financial year.

Indian general insurers are uncertain about their growth prospects for the fiscal year 2022, reports the Indo-Asian News Service.

The sector continues to battle headwinds including negative consumer sentiment, lower cash flow due to the withdrawal of the long-term motor policy, reduced investment yield and subdued economic growth.

Sector premium income grew 5.2% to $26.7b (INR1.99b) in FY2021.

"The health insurance portfolio will continue to do well. The motor insurance business should do well if the economy doesn't deteriorate further. Some sport utility vehicles (SUV) have waiting periods," Roopam Asthana, Liberty General Insurance said.

The two-wheeler business relies on the consumer sentiment and confidence whilst commercial vehicles will do well if the economy does well, he added.