Non-life insurance premium grows 10.4% in August

After a year-on-year (YoY) drop in premiums in the first quarter of FY21, the non-life insurance sector reported positive growth in monthly premium in July 2020. The trend continued in August and the premiums grew 10.4 per cent to Rs 17,623.2 crore.

General insurers showed a growth of 6 per cent on a YoY basis in Aug 2020. General insurers collected a premium of Rs 13,139 crore.

The standalone health insurers demonstrated a growth of 36.4 per cent in August 2020, which is roughly comparable to the growth of 32.8 per cent witnessed in August 2019.

Public sector insurers have grown at a slightly slower pace when compared to the private sector for the period ended August 2020. PSU general insurers have continued to cede ground to their private peers.

Fire segment grew by 35.4 per cent YoY between April-August mainly due to increase in reinsurance rates by state-owned General Insurance Corporation of India. This growth is however lower than the 47.8 per cent growth during the same period last year.

The marine segment has shown a negative growth of 14 per cent with total premium Rs 1,374 crore between April-August.

The Motor insurance segment has witnessed a significant decline with own damage (OD) premium falling at a faster rate compared to third party (TP) premium. Muted growth in the economy and subdued activity in the auto sales have impacted motor insurance business.