Indian non-lifers post strong growth in May despite pandemic
Premium growth was driven by the low base effect plus growth in the health segment.
India’s non-life insurance industry is still going strong even with the economic slowdown due to the pandemic, according to a CARE Ratings report, with figures released in May posting a 13.1% growth in line with the trend seen in previous months.
Non-life premiums hit INR12.316.5 crore in May 2021 compared to INR10,891.5 crore in the same month a year ago. Growth is anticipated to have been driven by the low base effect along with continued growth in the health insurance segment.
General insurers grew at 7.2% for May 2021 from a decline in May 2020. On the other hand, year-to-date numbers grew 14.4% in May 2021. The segment continues to maintain the highest share, but its continued growth can be attributed to the health portfolios.
Prior to the pandemic, the motor segment had a larger share of the premium of which a significant section has been ceded to the health segment, the report said. Standalone private health issuers have reported a sustained premium growth of 66.6% in May.
A similar growth has been observed in the YTD numbers which grew from INR1,653 crores up to May 2020 to INR2,665.9 crores up to May 2021.
The YTD May 2021 numbers have broadly reached the YTD May 2019 numbers, with a CAGR of 0.3% for the two years, CARE Ratings noted. However, this CAGR has been achieved due to the health insurance segment as general insurers have witnessed a negative CAGR, whilst standalone health insurers have demonstrated a double digit CAGR.