The domestic general insurance sector continued its monthly growth and registered a surge of 16.9% in gross direct premium income underwritten in January. However, data from the General Insurance Council also shows that private sector insurers saw higher growth in gross direct premium, compared to the public sector players.
For the overall general insurance industry, gross direct premium income underwritten in January was R8,840.89 crore, against R7,560.51 crore in January last year. In the current financial year, gross direct premium income underwritten for the general insurance industry stood at R78,718 crore, up by 13.8% compared with R69,196 crore in the previous financial year.
The data from the General Insurance Council also indicates that public sector’s gross direct premium income underwritten in January grew 11.6%. The premium for public sector insurers stood at R4,162.46 crore in January 2015 crore, compared with to R3,729.14 crore in the same month last year.
Private sector’s gross direct premium income underwritten in January increased by 17.9%.
Officials in the general insurance industry say the growth for private players largely came from motor and property insurance.
KG Krishnamoorthy Rao, MD and CEO at Future Generali India Insurance, says, “Typically, in the month of January, there are many renewal of policies of several multinational companies and corporate in the property and marine insurance. That could be one of the major reasons why the private sector has seen better growth than public sector insurers.”
In the fire insurance segment, gross direct premium income underwritten by non-life insurers in the current financial year was at R3,149 crore for the private sector and R3,939.85 crore for the public sector.
In the health insurance segment, gross direct premium income underwritten by general insurers in current financial year stood at R4,481.99 crore for the private sector and R12,857.23 crore for the public sector.
“Industry had aim of touching R1 lakh crore of gross premiums in 2015-2016, but we might touch R90,000 crore in the current financial year. Growth has been mostly on the motor, health, fire and marine cargo, and we expect to grow at a faster rate once the economy is revived,” said another top official from a leading insurance company.