In a note, CARE said non-life premiums are expected to be driven by the continued uptick in the health segment
The motor insurance segment — which has struggled to gather pace in premium collection — is showing signs of recovery, with the segment registering a 6 per cent YoY growth rate till August this year. However, it is still down 11 per cent compared to the pre-pandemic period.
The recovery is aided by higher auto sales in August. While premiums in three-wheelers rose 59.7 per cent, commercial vehicles grew 17.7 per cent, passenger vehicles 7.6 per cent, while tractors and two-wheelers witnessed 17 per cent and 14.6 per cent growth, respectively.
Crop Insurance
The surprise element has been crop insurance, which till July this year was in the contraction zone. Crop insurance premium increased 15.3 per cent till August in FY22, driven by the kharif season crop enrolment deadlines. This has propelled crops to the third-largest business segment of general insurers, with the pole position being occupied by health insurance, followed by motor.
Growth of Standalone Health Insurers
Health insurance recorded a 32 per cent growth rate till August compared to 12.6 per cent in the corresponding period last year, with premium growth of standalone health insurers being higher than the industry average so far. This indicates that retail premiums are growing faster than group business as the standalone health insurers derive most of their premiums from the retail segment, according to CARE Ratings.
Covid Related Health
General insurers have seen Covid-related health claims mount, especially after the second wave of the pandemic. Non-life insurers have received more Covid-related claims in the first five months of FY22 than in the entire FY21. However, these claims have begun slowing now.
In a note, CARE said non-life premiums are expected to be driven by the continued uptick in the health segment.
(Economy India)
