Non-life insurers report gross direct premium of Rs 15,855 cr in Oct
Non-life insurers reported gross direct premium of Rs 15,855.11 crore in October, down 0.42% year-on-year. Nonetheless, motor insurance coverage, which was going via a difficult interval in the previous few months as a result of fall in new autos gross sales, noticed premiums choose up in October. The tempo of the expansion in medical health insurance slowed as a result of fall in group well being premiums.
Knowledge from Kotak Institutional Equities present that gross direct premium for motor insurance coverage was Rs 7,183.5 crore in October, in contrast with Rs 6,954.1 crore in the identical month final yr, a development of three%. Motor insurance coverage, which has two segments — motor personal injury (OD) and motor third social gathering (TP), additionally noticed development in October.
Motor TP insurance coverage is necessary, with premium being fastened by the regulator on an annual foundation. Insurers, alternatively, repair their very own charges for OD and private accident cowl. Gross direct premium for motor TP was Rs 4,306.4 crore in October, up 4% in contrast with Rs 4,139.4 crore in October final yr. Premiums for motor OD went up by 2% to Rs 2,877 crore within the month underneath overview.
“Sturdy festive demand and a gradual rise in freight volumes and utilization charges supported premiums. Motor premiums have steadily improved from trough ranges noticed in April and Could and can doubtless enhance additional,” stated the Kotak report.
Motor insurance coverage is a crucial section within the non-life business because it instructions market share of round 30% of general premiums.
Medical health insurance additionally noticed surge in premiums in October. Gross direct premiums for medical health insurance stood at Rs 4,074.8 crore, towards Rs 3,840.6 crore within the year-ago interval, rising by 6%. Retail well being noticed surge in premiums by 30% to Rs 1,982.6 crore. In the previous few months, the tempo of development in retail well being has slowed down, market gamers stated.
“A slowdown in development in retail well being was doubtless an interaction of slowdown in day by day new Covid circumstances in India and decrease volumes in the course of the festive season. Standalone well being insurers reported a 32% Y-o-Y enhance in well being premiums, led by a 43% Y-o-Y enhance within the retail well being enterprise,” stated the report from Kotak Institutional Equities.
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