Insurance premium: Non-life premiums grew by 9.3 per cent to Rs 29,032 crore in July 2024. This growth was significantly lower than the 13.6 per cent growth recorded in the same month last year. Sectors that contributed significantly to the growth of the sector were retail health insurance, motor damage insurance and crop insurance.
Among all insurers, public sector property and casualty insurers performed well in July. Premium growth was 11.2%, well above the 3.7% growth of private insurers. It is very unusual for public insurers to outperform private insurers, as private insurers have always outperformed public insurers in the past.
Private insurers took the lead in the first four months of the current fiscal year, driven mainly by growth in crop insurance, health insurance and motor insurance.
A radical change
For specialist public sector insurers, there was a dramatic change in premiums in July 2024, which fell by 53.6% year-on-year to around 48.3%. They also grew by 13.5% year-on-year.
Standalone private health insurers continue to perform very well, recording 23.2 percent year-on-year growth in July 2024, just below the 24 percent growth recorded in July 2023. SAHI is gaining market share in the retail healthcare sector and with new entrants expected to enter the market in FY25, competition in this sector is likely to be tough.
The health insurance segment, the largest in the P&C industry, grew 12.0 percent year-on-year in fiscal 2025. This is a significant slowdown from the 24.3 percent growth a year ago. Retail insurance showed solid growth, while group insurance grew more cautiously, given the continued rationalization of premium rates and a pullback in government business.
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