IBEF: June 21, 2021
The general insurance industry is expected to increase by 7-9% in terms of gross direct premium income in FY22, backed by healthy growth from health and motor segment.
The sector is expected to register a marginal return on equity (3-4.5%) primarily driven by investment income which is extremely regulated by the IRDAI.
In FY21, the industry registered an increase of 4% YoY to reach Rs. 1.85 lakh crore (US$ 24.95 billion).
The private sector registered an increase of 8% YoY in gross direct premium income to reach Rs. 1.13 lakh crore (US$ 15.24 billion).
The health and personal accident business segment registered an increase of 12% in FY21. PSU entities also registered an increase of 2% in the same year.
The motor insurance segment has been the largest segment for general insurance industry contributed 37% share to the total market in FY21.
For FY21, the total motor business registered an increase of 2% to reach Rs. 67,800 crore (US$ 9.14 billion).
The fire insurance products contributed 11% to the overall gross direct premium income in FY21. The total premium increased by 27% in FY21 compared to an increase of 35% in FY20.
For both PSU and private sector companies, the growth in FY20 was solid, which further improved their market share in FY21.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.