General insurance companies reported a growth of 47.4% (year-on-year) in gross direct premium for October. Public sector insurers saw higher growth compared to private players, largely due to crop insurance.
Data from the General Insurance Council show that growth of standalone health insurers and specialised players such as ECGC and AIC slowed down in October.
The general insurance industry saw gross premium income at R11,834.75 crore for the month under review, compared with R8,028.99 crore in the same month last year. While private insurers registered gross premium income at R4,201.59 crore, up by 24.71%, public sector insurers reported growth of 74.78% at R6,689.57 crore.
The general insurance sector have seen sustained growth in the last few months and higher participation from private players as against public sector insurers.
“In the last few months, private players had seen higher growth compared to public sector insurers. But with crop insurance, public sector insurers has seen some sharp growth in the last two-three months. Even growth in motor insurance has helped industry in the last few months,” said a top insurance player.
The data from the General Insurance Council also shows that up to October, gross direct premium underwritten by the industry was R72,607.92 crore, compared to R54,994.71 crore last October, a growth of 32%.
Apart from general insurance, stand alone health insurance companies also saw surge in their premium income by 29% in the month of October. While two specialided players like ECGC and AIC saw combined growth of just 4.4% % in October.
“Last year we struggled to touch 1 lakh crore in new business premiums, but this year we hope to touch that figure soon and see high double digit for the general insurance sector,” said a senior official from leading public sector insurance company.