The non-life insurance industry has continued to show a strong performance even as the economic growth slows due to the second wave of the pandemic, CARE Ratings has said in a report.
According to the rating agency the May 2021 monthly numbers reported a 13.1% growth continuing with the trend seen during the previous months. Non-life insurance premium reached Rs 12,316.5 crores crore for the month of May 2021 compared to Rs. 10,891.5 crores in May 2020. Growth is anticipated to have been driven by the low base effect (national lockdown in May 2020 vs. localised lockdowns in May 2021), along with continued growth in the health insurance segment.
"The non-life industry has continued its FY22 journey on a positive note. The growth in May 2021 has continued to be driven by the private sector which grew at a much faster pace (growth of 16.8% in May 2021) compared to the public sector (growth of 4.8% in May 2021). The non-life premiums are expected to be driven by the continued uptick in the health segment. Further, enhanced digital solutions coupled with the offline offerings are expected to contribute to the premiums of the non-life companies. Meanwhile, the loss ratio could go up given the resurgence in covid claims thereby impacting the financials," the ratings agency has said.