Non-life insurance premiums in India up 14.8% in June

The sector is expected to grow by 13% to 15%.

In June 2023, India’s non-life insurance industry showed premiums climbing by 14.8% year-on-year (y-o-y), data from General Insurance Council and Insurance Regulatory and Development Authority of India showed.

Compared to 20.6% growth in the same period last year, the growth was primarily driven by health and motor insurance, while the fire segment had subdued y-o-y growth of 5.9%.

CareEdge Ratings projects a 13-15% growth rate for the Indian non-life insurance market in the medium term. 

Health insurance is expected to exceed Rs1 lakh crore, and motor insurance premiums are predicted to surpass Rs85,000 crore in FY24. 

This growth will be driven by increasing disposable income, higher transaction volumes, and favourable regulations.

Factors such as improved profitability, controlled expenses, and a supportive regulatory environment will contribute to overall business growth. 

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Strengthening distribution networks, higher investment yields, and available capital will also aid sector expansion.

Although, recent flood-related damages in northern Indian areas may dampen general insurance claims. 

Nonetheless, the non-life insurance sector's overall outlook remains stable in the medium term. 

Monitoring intensified competition, uncertain international geopolitics, and high inflation is crucial, as these factors could potentially affect economic growth and subsequently impact the non-life insurance industry.