The non-life industry has continued its FY22 journey on a positive note, CARE Ratings has said in a report.
"The Q1FY22 growth has continued to be driven by the private sector which grew at a much faster pace (growth of 17.6% in Q1FY22) compared to the public sector (growth of 9.1% in Q1FY22). The non-life premiums are expected to be driven by the continued uptick in the health segment.
Further, enhanced digital solutions complemented by the offline offerings are expected to drive premium growth of the non-life companies. Meanwhile, the loss ratio could go up given the resurgence in covid claims thereby impacting the financials," CARE Ratings has said.
General Insurers grew at 4.9% for June 2021 which higher than the 3.2% growth witnessed in June 2020. The YTD numbers grew at a 11.1% for Q1FY22 vs a decline of 6.7% in Q1FY21. The General Insurance segment continues to maintain the highest share; however, its continued growth can be attributed to the health portfolio.
"Prior to the Covid-19 pandemic, motor insurance segment had the largest share of the non-life insurance premium, a significant section of which has been ceded to the health segment. Standalone Pvt Health issuers have reported a sustained premium growth of Rs. 1,556.9 crores in June 2021, demonstrating a growth of 46.6%. A similar growth has been observed in the Q1FY22 numbers which grew to Rs 4,222.8 crore from Rs 2,715 crores in Q1FY21, a jump of 55.5% vs. a growth of 17.8% in Q1FY2," CARE Ratings has said.