India general insurance industry doubles growth rate in 2022

From 5% in 2021, it is forecasted to grow by 10.2% by end 2022.

India’s general insurance industry is poised to double its compound annual growth rate (CAGR) to 10.2% by end 2022 from its slowest growth of the decade at 5% from 2021, according to data and analytics firm GlobalData.

The industry is expected to grow at a CAGR of 9.9% to $41.78b in the next five years to 2026. According to GlobalData’s senior insurance analyst Shabbir Ansari, India’s general insurance industry is poised for a strong recovery in 2022, driven by increase in awareness and demand for health insurance and an economic recovery, which has helped automobiles and property demand reach its pre-pandemic levels.

India’s low base of 5% was because of the sluggish performance of motor and property insurance lines due to the COVID-19 pandemic that negatively impacted the general insurance industry in India in 2021.

Personal accident and health (PA&H) insurance was the largest segment, accounting for 33.8% of general insurance GWP in 2021. It grew by 14.% in 2021 due to a surge in demand for health insurance policies following the COVID-19 pandemic. This trend will continue over the forecast period as the PA&H segment is expected to grow at a CAGR of 11.7% over 2021-26

Meanwhile, motor insurance, the second-largest segment, accounted for 33.3% of GWP in 2021. It registered a sluggish growth of 2.7% due to lower vehicle sales following the economic slowdown and shortage of automobile chips globally. The motor insurance segment is expected to recover in 2022 and grow by 8.8%, in-line with recovery in automobile sales.

“India’s general insurance penetration of 0.9% in 2021 is very low compared to the top five countries in the region - South Korea (5.1%), Australia (3.5%), New Zealand (2.1%), Japan (1.8%) and Hong Kong (1.6%). As a result, there are ample opportunities for growth and expansion in the Indian general insurance industry,” Ansari said.

You may also like:

Taiwan insurance industry suffers double digit drops in April

Great Eastern sets new target for net zero goal by 2025

India jacks up third-party motor insurance premiums

Follow the link for more news on

GlobalData

Also Read

HKIA takes action against ethical breach by agent

Asia bears $17b of Q1 natural disaster economic loss

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit