Non-life insurers reported gross direct premium of Rs 15,855.11 crore in October, down .42% year-on-year. However, motor insurance coverage, which was going by way of a difficult period in the final couple of months due to the fall in new autos sales, saw premiums choose up in October. The pace of the development in well being insurance coverage slowed due to the fall in group well being premiums.
Data from Kotak Institutional Equities show that gross direct premium for motor insurance coverage was Rs 7,183.five crore in October, compared with Rs six,954.1 crore in the exact same month final year, a development of three%. Motor insurance coverage, which has two segments — motor personal harm (OD) and motor third celebration (TP), also saw development in October.
Motor TP insurance coverage is mandatory, with premium becoming fixed by the regulator on an annual basis. Insurers, on the other hand, repair their personal prices for OD and individual accident cover. Gross direct premium for motor TP was Rs four,306.four crore in October, up four% compared with Rs four,139.four crore in October final year. Premiums for motor OD went up by two% to Rs two,877 crore in the month below assessment.
“Robust festive demand and a gradual rise in freight volumes and utilization rates supported premiums. Motor premiums have gradually improved from trough levels observed in April and May and will likely improve further,” mentioned the Kotak report.
Motor insurance coverage is an critical segment in the non-life sector as it commands market place share of about 30% of general premiums.
Health insurance coverage also saw surge in premiums in October. Gross direct premiums for well being insurance coverage stood at Rs four,074.eight crore, against Rs three,840.six crore in the year-ago period, increasing by six%. Retail well being saw surge in premiums by 30% to Rs 1,982.six crore. In the final couple of months, the pace of development in retail well being has slowed down, market place players mentioned.
“A slowdown in growth in retail health was likely an interplay of slowdown in daily new Covid cases in India and lower volumes during the festive season. Standalone health insurers reported a 32% Y-o-Y increase in health premiums, led by a 43% Y-o-Y increase in the retail health business,” mentioned the report from Kotak Institutional Equities.