The health insurance market emerged as the main engine of development, registering a notable gain in premiums, surpassing the Rs 1 trillion barrier, and registering a growth of 20.2% for FY24.
With the exception of health insurance, motor insurance makes up almost 50% of the non-life insurance market. It has grown steadily, reaching a total of Rs 91,781.3 crore in FY24 at a growth rate of 12.9%.
Despite challenges from the waning liability, crop insurance, and credit guarantee sectors, India’s non-life insurance market saw notable growth in the fiscal year 2023–24 (FY24), driven mostly by the health and auto insurance categories.
The driving forces behind the continued dominance of group health insurance were improved coverage and the rationalization of premium discounts.
The growth was largely driven by government programs, especially Ayushman Bharat, which reflected a higher share of overall health premiums.
With a total premium of Rs 2.9 lakh crore for non-life insurance, the growth rate for this category was 12.8%, which is a little less than the 16.3% growth that was observed in the previous fiscal year.
The strong success of the car sector, which was fueled by rising sales and premiumization, especially in the SUV segment, was blamed for this expansion.
Other areas: The industry’s overall growth trajectory was impacted by the declines in areas like credit guarantee, liability, and crop insurance, while health and motor insurance saw significant increase.
Comparatively speaking to other years, the marine and fire insurance divisions likewise experienced muted growth.
With a growth rate of 9.9%, public sector general insurers performed admirably in March 2024, whilst private sector general insurers rose by 9.5 percent.
Nevertheless, when compared to the prior fiscal year, the yearly growth rates for both sectors were below average.
Private health insurers operating independently (SAHIs): SAHIs maintained their development trajectory, with premiums exceeding Rs 4,000 crore in March 2023, indicating a 25.9% year-over-year increase.
The health insurance market is anticipated to see more competition in FY25 as a result of the IRDAI’s approval of two new SAHIs in FY24.
Industry analysts predict a growth rate of roughly 13–15% in the medium term, mainly driven by the health and auto insurance categories, notwithstanding sectoral constraints.
Higher GDP growth, a good monsoon, and regulatory actions are some of the factors that are anticipated to support growth.
The sector’s growth trajectory is challenged by increased competition, inflationary pressures, and uncertainty in the global geopolitical climate.
Furthermore, the lack of a motor third-party rate increase for FY25 and the geopolitical unrest surrounding the Red Sea may have a detrimental effect on some segments.
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